DRAFT PROPOSED AMENDMENTS TO NEW SOURCE REVIEW … · RULE 20.3 – MAJOR STATIONARY SOURCES & PSD...

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AIR POLLUTION CONTROL DISTRICT COUNTY OF SAN DIEGO DRAFT PROPOSED AMENDMENTS TO NEW SOURCE REVIEW RULES RULE 20.1 GENERAL PROVISIONS RULE 20.2 NON-MAJOR STATIONARY SOURCES RULE 20.3 MAJOR STATIONARY SOURCES & PSD STATIONARY SOURCES RULE 20.4 PORTABLE EMISSION UNITS WORKSHOP REPORT A workshop notice on the draft proposed amendments to the Air Pollution Control District’s New Source Review (NSR) Rules 20.1, 20.2, 20.3 and 20.4 was mailed to all Permit and Registration Certificate holders in San Diego County. Notices were also mailed to all economic development corporations and chambers of commerce in San Diego County, the U.S. Environmental Protection Agency (EPA), the California Air Resources Board (ARB), and other interested parties. The workshop was held on May 7, 2015, and was attended by 36 people, including representatives of local businesses, government agencies and other organizations. Verbal comments were received during the workshop. Written comments were received before and after the workshop. The comments and Air Pollution Control District (District) responses are provided below. Based on comments received, the District is proposing changes to the draft NSR rules considered at the workshop. A list of those changes is included as an attachment to this workshop report. 1. WORKSHOP COMMENT The exemption in Rule 20.1, Subsection (b)(4), regarding emission units subject to District Rule 69, is being deleted. Is Rule 69 scheduled to be revised as well? DISTRICT RESPONSE The District has no plans to revise or delete Rule 69 at this time. Rule 69 was constructed to allow the single owner utility, operating all the large utility boiler power plants in San Diego County in the 1990’s, to comply with an overall declining NOx emissions cap for the power plants. However, Rule 69 also prescribed Best Available Retrofit Control Technology emission limits for each power plant boiler for which ownership changed. In the early 2000’s, ownership of all of the affected power plant boilers changed, and many of the previous utility boilers have since been removed and/or replaced. The Rule 69 boiler emission rate limits still apply to the remaining boilers. As the remaining power plant boilers regulated under Rule 69 are removed or replaced by new units subject to more stringent Best Available Control Technology (BACT) or Lowest Achievable Emission Rate (LAER) emission limits under the NSR regulations, and depending on available resources, the District may consider revising or deleting Rule 69.

Transcript of DRAFT PROPOSED AMENDMENTS TO NEW SOURCE REVIEW … · RULE 20.3 – MAJOR STATIONARY SOURCES & PSD...

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AIR POLLUTION CONTROL DISTRICT

COUNTY OF SAN DIEGO

DRAFT PROPOSED AMENDMENTS TO NEW SOURCE REVIEW RULES

RULE 20.1 – GENERAL PROVISIONS

RULE 20.2 – NON-MAJOR STATIONARY SOURCES

RULE 20.3 – MAJOR STATIONARY SOURCES & PSD STATIONARY SOURCES

RULE 20.4 – PORTABLE EMISSION UNITS

WORKSHOP REPORT

A workshop notice on the draft proposed amendments to the Air Pollution Control District’s

New Source Review (NSR) Rules 20.1, 20.2, 20.3 and 20.4 was mailed to all Permit and

Registration Certificate holders in San Diego County. Notices were also mailed to all economic

development corporations and chambers of commerce in San Diego County, the U.S.

Environmental Protection Agency (EPA), the California Air Resources Board (ARB), and other

interested parties.

The workshop was held on May 7, 2015, and was attended by 36 people, including

representatives of local businesses, government agencies and other organizations. Verbal

comments were received during the workshop. Written comments were received before and

after the workshop. The comments and Air Pollution Control District (District) responses are

provided below. Based on comments received, the District is proposing changes to the draft

NSR rules considered at the workshop. A list of those changes is included as an attachment to

this workshop report.

1. WORKSHOP COMMENT

The exemption in Rule 20.1, Subsection (b)(4), regarding emission units subject to District Rule

69, is being deleted. Is Rule 69 scheduled to be revised as well?

DISTRICT RESPONSE

The District has no plans to revise or delete Rule 69 at this time. Rule 69 was constructed to

allow the single owner utility, operating all the large utility boiler power plants in San Diego

County in the 1990’s, to comply with an overall declining NOx emissions cap for the power

plants. However, Rule 69 also prescribed Best Available Retrofit Control Technology emission

limits for each power plant boiler for which ownership changed. In the early 2000’s, ownership

of all of the affected power plant boilers changed, and many of the previous utility boilers have

since been removed and/or replaced. The Rule 69 boiler emission rate limits still apply to the

remaining boilers. As the remaining power plant boilers regulated under Rule 69 are removed or

replaced by new units subject to more stringent Best Available Control Technology (BACT) or

Lowest Achievable Emission Rate (LAER) emission limits under the NSR regulations, and

depending on available resources, the District may consider revising or deleting Rule 69.

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2. WORKSHOP COMMENT

The District has expanded what it regulates with regard to Navy ships. Formerly, by policy, the

District had not required permits or applied NSR requirements to shipboard maintenance

painting operations conducted onboard ship by Navy forces. These have been on-going for

many years. The District did require, and the Navy agreed to use, compliant paints and solvents.

Now, the District is requiring permits for these operations conducted while the ship is docked,

and considering them new and subject to NSR. This is creating a lot of turmoil for the Navy.

The Navy is willing to put these onboard at-dock painting operations under District permit, but

requesting that these not be considered new operations subject to NSR. While the Navy is

concerned, specifically regarding this onboard ship painting matter, there may be other similar

cases in the future where on-going operations that are exempted from permit by policy, rather

than explicitly in Rule 11, are later required to obtain permits. The District should expand the

exemption from NSR in Rule 20.1(b)(1), which applies to permit-exempt emission units that are

required to obtain a permit due to a change in Rule 11, to include existing on-going operations

that were not previously required to have a permit by District policy but are now required to have

a permit due to a change in policy. The District may need to also consider the definition of

“new” as it might apply to such cases.

DISTRICT RESPONSE

The District is not proposing to amend the exemption in Rule 20.1(b)(1) as requested by this

comment. The suggested changes to Rule 20.1 would be a weakening of the current rule and as

such are prohibited by State law (Cal. Health and Safety Code §42500 et. Seq. – SB 288). There

has been some confusion concerning whether ships’ force operations are regulated by the

District. All ships’ force operations, not just those mentioned in the comment, are considered

part of the stationary source and require a District permit to operate, unless otherwise exempt by

District Rule 11(d)(15). Ships’ force operations that do not meet the exemption in District Rule

11 can be included under existing marine coating permits or a new permit to operate may be

granted for these operations. All ships’ force operations that require a permit and that have not

been previously permitted will be evaluated as new emission units and will be subject to NSR,

Toxic NSR, and all applicable prohibitory rules, such as Rule 67.18 (Marine Coating

Operations).

See also response to Comment No. 34.

3. WORKSHOP COMMENT

The City of San Diego manages wastewater collection, treatment, disposal and water reclamation

facilities that are not co-located but are connected by pipelines. How would these be treated

under the proposed revised definition of “contiguous property” in Rule 20.1(c)?

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DISTRICT RESPONSE

The District is now proposing to delete the definition of “contiguous property” from Rule 20.1

since it is already defined in District Rule 2. The initial draft revisions to the definition of

“contiguous property” were intended to clarify existing APCD application of the definition and

to clarify that sources connected solely by utility lines or pipelines are not considered to be a

single stationary source. As such, the revised definition was not designed to change the way the

facilities listed above are treated for purposes of stationary source determinations. For this

reason, and to retain the internal consistency in the definitions in District rules, the District is

proposing to delete this definition from Rule 20.1. The existing definition in Rule 2 is the same

as the current definition in Rule 20.1. See also responses to Comment Nos. 32 and 33.

4. WORKSHOP COMMENT

Regarding the proposed revisions to the BACT definition in Rule 20.1(c), it looks like BACT

could not be less stringent than if applied to an individual emission unit, but could be more

stringent if BACT is evaluated and applied to more than one emission unit as a project. How

does this relate to the BACT trigger levels? Would they be applied based on the emission

increases for individual emission units or for a group of emission units?

DISTRICT RESPONSE

The District NSR rule BACT triggers would still be based on the emissions associated with

individual emission units. Rules 20.2(d)(1)(v) and 20.3(d)(1)(vii) refer to the evaluation of

BACT (or LAER) for projects consisting of multiple emission units required to be equipped with

BACT (or LAER). In some cases, the District may determine that the feasibility, cost-

effectiveness and emission control capability of emission controls applied to multiple emission

units should be evaluated. While the District could do this previously, the revised BACT

definition makes this authority explicit.

5. WORKSHOP COMMENT

Regarding the major stationary source or major modification definitions and emission thresholds

in Rule 20.1(c), has the District changed or reduced any of those thresholds?

DISTRICT RESPONSE

The District has not proposed to lower any of the current major stationary source or major

modification emission thresholds. The District is proposing to add definitions for “federal major

stationary source” and “federal major modification” with higher VOC and NOx emission

thresholds of 100 tons per year for a federal major stationary source and 40 tons per year for a

federal major modification. These definitions will also contain provisions for automatically

lowering the emission thresholds to 50 tons per year and 25 tons per year, respectively, if the San

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Diego Air Basin is formally designated by EPA as a serious or severe ozone nonattainment area

at some time in the future. There is some chance this may occur based on recent ozone air

quality levels.

The current Rule 20.1 major stationary source/major modification emission thresholds for VOC

and NOx remain at 50 tons per year and 25 tons per year. Those current thresholds cannot be

increased as that would result in fewer projects being subject to existing, current rule

requirements. State law prohibits any relaxation of current NSR requirements. The two

proposed new definitions of federal major stationary source and federal major modification will

be used to apply additional, new federal NSR requirements included in the rule revisions. These

new requirements will then only apply to a few very large emission sources. The intent is to

minimize the impact of these EPA-mandated requirements.

6. WORKSHOP COMMENT

Why was the definition of military tactical support equipment in current Rule 20.1(c)(36)

deleted?

DISTRICT RESPONSE

A definition of military tactical support equipment is no longer needed in Rule 20.1. A

definition of military tactical support equipment is already contained in District Rule 2 as the

term is now used in several District rules. That definition is identical to the current definition in

Rule 20.1 and applies for all District rules unless otherwise specified.

7. WORKSHOP COMMENT

The definition of “Contemporaneous Net Emissions Increase” is more extensive now. It is used

in the definition of a major modification. How does this change how the rules apply? How does

this apply when one does the 80 percent actual emissions to potential to emit test in the rules?

DISTRICT RESPONSE

The proposed revised definition of “Contemporaneous Net Emissions Increase” in Rule 20.1(c)

is not being substantively changed from the current definition of “Contemporaneous Emissions

Increase” in current Rule 20.1(c)(16). The proposed changes clarify, but do not change, the five-

year contemporaneous emissions accounting period, and emphasize that both emission increases

and emission decreases are accounted for within the contemporaneous period. Both under the

current rules and the proposed revised rules, the contemporaneous emissions increase accounting

is used to determine if a project constitutes a major modification, and under the proposed revised

rules is used to determine if a project constitutes a federal major modification. The District is

also proposing to allow an applicant for a modification at a federal major stationary source, as

proposed in the revised rules, to use the EPA emissions increase test for purposes of applying the

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new rule requirements that are specific to federal major stationary sources and federal major

modifications. This would be at the option of the applicant and would be in addition to the

requirement to use the current emissions increase tests, under the current and proposed rules, that

are used to determine the applicability and extent of rule requirements for all projects.

The 80 percent test in current Rule 20.1 is a federal requirement that has been in effect for many

years and will continue to apply under the revised rules at facilities that are already major

stationary sources that are modifying an emissions unit, and where the modification will result in

an emissions increase. If past actual emissions are less than 80 percent of the unit’s pre-

modification allowable emissions (i.e., pre-project potential to emit (PTE)), the emissions

increase is based on the proposed new allowable emissions (post-project potential to emit) after

the modification minus past actual emissions. If past actual emissions are equal to or more than

80 percent of the unit’s pre-modification allowable emissions, then the emissions increase is

based on the proposed new allowable emissions minus the pre-modification allowable emissions

(i.e., a post-project PTE minus pre-project PTE calculation). (Note: to meet EPA requirements,

past actual emissions may need to be further adjusted under the revised rules if the modified unit

is located at a federal major stationary source, as newly defined.)

Once the emissions increase is determined after applying this 80 percent test, the emissions

increase is added into the contemporaneous (net) emissions increase accounting to determine if

the modified emission unit will constitute either a major modification (current and proposed

revised rule) or a federal major modification (proposed revised rule).

The emissions increase test under EPA’s NSR Reform regulations for most modification projects

at federal major stationary sources compares past actual emissions (over a ten-year look-back

period and adjusted to current applicable federal requirements) to future expected actual

emissions as projected by the applicant. The emissions increase can then be adjusted downward

to take into consideration what activity level the emissions units being modified could have

accommodated without the proposed modification.

State law (SB288) precludes the District from changing its NSR rules to apply this new EPA

emissions increase test across the board in the District’s NSR rules because ARB considers

EPA’s method to be less stringent than the District’s current methodology. Nevertheless, the

District is proposing to allow an applicant for a modification at a federal major stationary source,

as proposed in the revised rules, to use the EPA emissions increase test for purposes of applying

the new rule requirements that are specific to federal major stationary sources and federal major

modifications. This would be at the option of the applicant and would be in addition to the

requirement to use the current emissions increase tests, under the current and proposed rules, that

are used to determine the applicability and extent of rule requirements for all projects.

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8. WORKSHOP COMMENT

Does the 80 percent test apply to each air pollutant individually or, if a source is a major source

for any one pollutant, does that 80 percent test apply for all air pollutants at that facility? Does

this test only apply if the modification is at an existing major source?

DISTRICT RESPONSE

The 80 percent test in the current and proposed rules applies to each air pollutant individually.

Also, the 80 percent test applies only in the case of a proposed modified emission unit at an

existing major stationary source. The opening sentence of current Rule 20.1(d)(1) states, “The

potential to emit of each air contaminant shall be calculated on an hourly, daily and yearly

basis”. Thus, the 80 percent actual emissions to potential emissions test that follows in Rule

20.1(d)(1)(i)(C) applies on an air contaminant-specific basis. If a source is major for one air

contaminant, for example VOC, then the 80 percent test would apply only to that one air

contaminant. For air contaminants for which a facility is not a major stationary source, the 80

percent test would not apply and instead, for most cases, the emissions increase is based on a

post-project potential to emit versus pre-project potential to emit comparison.

The proposed revisions to Rule 20.1 contain a more explicit statement to this effect in the new

opening sentence to Rule 20.1(d) – “The emission calculation provisions and requirements of

this Section (d) shall be applied on an air contaminant-specific basis.”

9. WORKSHOP COMMENT

Can the 80 percent actual emissions to potential emissions test be applied on a project basis

rather than to each individual emission unit for some future special projects? This might provide

a facility with more flexibility for compliance with the rules.

DISTRICT RESPONSE

The 80 percent test in current District NSR Rule 20.1 cannot be revised to allow it to be applied

on a project basis rather than on an emissions unit basis. The ARB would certainly determine

that such a revision would constitute a relaxation of the NSR rule requirements. The 80 percent

test in the current rule is used to determine the pre-project potential to emit of an emission unit

located at an existing major stationary source. This pre-project potential to emit for the emission

unit is then used in determining whether a modification to that unit results in an emissions

increase. This then determines whether BACT applies to that unit and whether there is an air

quality impact analysis required for the modified emission unit. BACT and air quality impact

analysis requirements are core requirements of the NSR program, locally and under State law.

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The current NSR rules (and the proposed revised rules) do consider the overall effects of a

project in assessing air quality impacts, and in determining the amount of a contemporaneous net

emissions increase. The latter is used to determine whether a major modification will occur and

if emissions offsets and LAER technology is required.

10. WORKSHOP COMMENT

Regarding the NSR rules definition of portable emissions units, the definition is confusing and it

seems the District determines what it wants to be portable and what it does not want to be

portable. The District has developed policies and issued advisories that apply to portable

emission units. These affect how portable units are regulated but these policies have not gone

through a public review and comment process. These policies should be codified in the

District’s regulations so they can go through a public review process.

DISTRICT RESPONSE

The District disagrees with the suggestion that the District’s policies be incorporated into the

NSR rules. The Board-adopted rules apply generically to a wide variety of portable units.

Incorporating such policies into the rules, which often are tailored to a specific category of

portable units, would likely be counterproductive. Doing so would also complicate the process

of obtaining rule approvals from ARB and EPA. Policies detailing specific local permitting

procedures for specific types of equipment that are adopted into District rules and subsequently

approved by EPA cannot be readily revised as circumstances change.

The District frequently issues policy documents and advisories to assist regulated entities with

compliance. District policies often are tailored to specific industries or types of portable

equipment but do not fundamentally change the underlying rule definitions. It is often necessary

to develop policies dealing with unique circumstances. These documents may also be updated to

provide additional examples or guidance, depending on changed circumstances. It would be

impracticable and cumbersome to include these as part of the actual rule language since it would

make the rules much longer, and it would require the District to obtain District Board, ARB and

EPA approval prior to any changes in guidance, thus eliminating flexibility for regulated

facilities.

The proposed revised Rule 20.1 definition of “portable emission unit” is not changing from the

current Rule 20.1 definition, except that a phrase is added to make clear that portable emission

units, for purposes of the NSR rules, are only those subject to the permit requirements of District

Rule 10. The definition of "portable emission unit" in Rule 20.1 is nearly identical to that

contained in ARB’s portable equipment registration program regulation. ARB has a document

on its website (http://www.arb.ca.gov/portable/perp/capcoa_document_3-12-14.pdf) which

contains a California Air Pollution Control Officers Association (CAPCOA) summary of

explanations and examples illustrating how air districts interpret and apply the portable

equipment definition and registration program.

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Other types of portable emission units that are not subject to Rule 10 permit requirements, in

particular the many hundreds of portable units that are registered under District Rules 12 or 12.1

or under the California Air Resources Board Portable Equipment Registration Program (PERP),

are not subject to the District’s NSR rules, to the extent they are operated within the restrictions

of those registration programs.

11. WORKSHOP COMMENT

The proposed revisions to the rules are very extensive and detailed. There has not been

sufficient time to analyze the changes and to prepare comments.

DISTRICT RESPONSE

The District published and distributed the draft proposed rule revisions more than one month

before the May 7, 2015, workshop and continued to accept comments on them following the

workshop so those comments could be addressed in this workshop report. The District will

consider, as appropriate, any additional comments received from affected facilities, members of

the public, ARB and EPA before the revised rules are noticed for hearing before the Air

Pollution Control Board, as well as any comments submitted prior to the hearing, as time

permits.

12. WORKSHOP COMMENT

The Rule 20.1 definitions of “Contiguous Property” and “Stationary Source” use the phrase

“common ownership or common control”. Should it read, “common ownership and common

control”, as used by EPA?

DISTRICT RESPONSE

Changing the rule definitions to “common ownership and common control” or, equivalently,

“common ownership and entitlement to use” would undercut the intent which is to prevent

sources from attempting to avoid NSR requirements through contractual arrangements with third

parties that, in effect, appear to reduce emissions attributable to the source without any real

emission reduction at the source or which dilute responsibilities for compliance. Instead, the

District is now proposing to delete both the definitions of “Contiguous Property” and “Stationary

Source” from Rule 20.1, since both terms are already defined in District Rule 2. The Rule 2

definitions of “Contiguous Property” and “Stationary Source” are identical to the current

definitions in Rule 20.1 and will apply to all District rules unless otherwise specified.

Accordingly, these definitions are no longer needed in Rule 20.1.

The primary purpose of the initial draft amendments proposed by the District was to replace the

existing Rule 20.1 wording “common ownership or entitlement to use” with the proposed new

phrase “common ownership or common control” to bring it more in line with EPA’s definition.

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The EPA’s definition uses the wording “…under the common control of the same person (or

persons under common control).” No substantive change to the current District application of

the phrases was intended.

13. WORKSHOP COMMENT

Under the proposed definition of “Stationary Source”, is there a reason why the District added

reference to the California Coastal Waters?

DISTRICT RESPONSE

The District is now proposing to delete the Rule 20.1 definition of “Stationary Source” in favor

of the current definition in District Rule 2, as noted above in the response to Comment No. 12.

The current Rule 20.1 definition of “Stationary Source” already requires that emission units

located in California Coastal Waters be included as part of a stationary source. The proposed

pre-workshop revision was to clarify that only those emission units in coastal waters that are

under the same common ownership or common control as the stationary source will be included

as part of the stationary source.

14. WORKSHOP COMMENT

The District does not define “common control.” Is the term federally defined?

DISTRICT RESPONSE

There is not a federal definition of “common control” but it is the subject of several EPA

determination letters explaining how EPA applies the term in specific cases under review. The

District is no longer proposing to add this language to the definition. See also responses to

Comment Nos. 32 and 33.

15. WORKSHOP COMMENT

Regarding the new requirement in Rule 20.1(d)(2)(iv) to adjust historic actual emissions, does

that mean that if you had emissions in the past that did not include all current controls, you could

not count all of those emissions? Would you determine emissions as if it was a new source?

DISTRICT RESPONSE

If new federal requirements apply, past actual emissions might be reduced, but the existing unit

being modified would not be treated as a new unit. The proposed Rule 20.1(d)(2)(iv) adjustment

would be to current federal requirements applicable to the unit as an existing emission unit. The

historic emissions would not have to be adjusted to current BACT or LAER technology emission

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levels that apply to new units, but would be adjusted to levels that reflect current federally

enforceable requirements that apply to the emission unit under review, as an existing emission

unit. The term “federally enforceable requirement” is defined in Rule 20.1(c) and can include,

but is not limited to, District rule requirements that are in the San Diego portion of the EPA-

approved State Implementation Plan (SIP), any applicable federal New Source Performance

Standards (NSPS) or National Emission Standards for Hazardous Air Pollutants (NESHAPs)

requirements, and any past Authority to Construct conditions issued pursuant to a SIP-approved

NSR rule.

Current District NSR rules do not apply this adjustment when accounting for past actual

emissions. It has been included in the proposed Rule 20.1 revisions because it is required by

EPA regulations.

This adjustment will only apply to emission units located at federal major stationary sources, as

newly defined in proposed Rule 20.1. The District is also proposing that this adjustment apply

only to (federal) non-attainment air contaminants and their precursors (at this time, only VOC

and NOx). Also, an exception in EPA regulations for certain electric steam generating units will

be added to the proposed new Rule 20.1(d)(2)(iv).

16. WORKSHOP COMMENT

Would the emissions of permit-exempt equipment at a stationary source be based on potential to

emit? Are those emissions included in the stationary source’s aggregate emissions?

DISTRICT RESPONSE

The emissions from permit-exempt emission units would be based on their actual emissions, not

on their potential to emit. The potential to emit of such units will not have been previously

established through a permit review, and would likely be unrepresentative of actual emissions

from such units. The District has proposed language in revised Rule 20.1, Subsection (d)(1)(ii),

that emissions from permit-exempt emission units would only be included in the stationary

source aggregate potential to emit if those emissions would be determining as to whether the

stationary source is a federal major stationary source. EPA has not yet agreed to this proposal.

EPA has stated that the Rule 20.1(d)(1)(ii) provisions for determining the aggregate potential to

emit of a stationary source should not exclude permit-exempt equipment emissions. The District

has not historically included those emissions because they can include a sizable number of very

small emission sources and are difficult to quantify. Moreover, for most sources, they are not

relevant in the application of the NSR rules. There is no need to account for emissions from

permit-exempt emission units at large stationary sources with permitted emissions already over

the federal major stationary source thresholds, nor for the many hundreds of smaller stationary

sources with emissions well below federal major source thresholds. In both cases, the emissions

from the permit-exempt units will not be a determining factor in whether the source is a federal

major stationary source. There may be a few cases where the emissions from permitted

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equipment puts a facility very close to the federal major stationary source threshold and where

emissions from permit-exempt units, if included, would make a difference as to its federal major

stationary source status.

17. WORKSHOP COMMENT

Is there opportunity to comment on the NSR rules proposal before EPA approves them?

DISTRICT RESPONSE

The District will consider, as appropriate, any additional comments received from affected

facilities, members of the public, ARB and EPA prior to the revised rules being noticed for

hearing before the Air Pollution Control Board, as well as any comments submitted prior to the

hearing, as time permits. The proposed rules will be considered by the San Diego County Air

Pollution Control Board in a public hearing noticed at least 30 days in advance. At some future

date after the San Diego County Air Pollution Control Board (Board) approves the rules, they

will be forwarded to ARB for approval, and then ARB will forward them to EPA. EPA will

decide whether to fully approve, partially approve or disapprove the District’s NSR rules. EPA

will publish a proposed decision in the Federal Register, at which time comments can be

provided to EPA. In the interim, the proposed changes to Rules 20.1, 20.2 and 20.3 will not go

into effect until approved by the State ARB and federal EPA. Current Rules 20.1, 20.2 and 20.3,

adopted in 1998, will continue to apply in the interim. The District is recommending that the

proposed revisions to Rule 20.4, which are primarily to address local issues, become effective

upon approval by the Board.

18. WORKSHOP COMMENT

Since the District’s proposal would require that emission reduction credits be further adjusted

when used as emission offsets for a new federal major source or a federal major modification,

but would not require such an adjustment for offsets for non-federal major projects, will the

District identify in its Banking Registry which credits are likely to be discounted and by how

much?

DISTRICT RESPONSE

The District does not plan to evaluate all current credits and publish what their value would be in

the small chance that they might be used for a project requiring this additional discounting.

District Rule 20.1(d)(5)(v) is a proposed new requirement that emission reduction credits be

adjusted to account for current federal requirements at the time they are used as emission offsets.

This is a federal EPA requirement and must be included in the District’s NSR rules in order for

those rules to be approved by EPA. However, in order to minimize the potential impact of such

adjustments, the District is proposing that this new requirement only apply to emission offsets

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for new federal major sources and federal major modifications, as newly defined in the proposed

NSR rules. Hence, emission offsets provided for new major stationary sources or major

modifications that are not new federal major stationary sources or federal major modifications

would not be affected by the EPA requirements.

Regarding the emission reduction credit Banking Registry, the credits in the Banking Registry

can potentially be used to provide offsets for both new major stationary sources/major

modifications under the current NSR rules and new federal major stationary sources/federal

major modifications under the proposed revised rules. Banked credits are often transferred

among brokers or potential future applicants. Only credits used for federal major sources/federal

major modifications are required to be further adjusted to reflect current federal requirements.

The District is expecting that this will occur very infrequently. Moreover, since federal

requirements can change over time, the amount of discounting can change as well.

When a federal major project is proposed and will need emission offsets, the applicant or its

consultants will have to research the origin of the emission reduction credits they are considering

to determine what impact, if any, the additional discounting will have on the quantity (and cost)

of the emission offset.

19. WORKSHOP COMMENT

Can emission reduction credits be created from photovoltaic (solar electric) panels on houses?

DISTRICT RESPONSE

Theoretically, someone could propose to create credits from the aggregation of numerous

residential, commercial or institutional photovoltaic systems, or from a large utility-level project,

develop methods for quantifying emission reductions, and propose methods for ensuring that the

emission reductions from use of the systems would be permanent (a minimum 30 year project

life may be required) and enforceable over that life. Doing so would present significant costs

and technical and contractual challenges. To be useable as an emission offsets for a new major

stationary source or a major modification, an emission reduction must be real, surplus (of State

and federal requirements), enforceable, quantifiable, and permanent. While the use of

photovoltaic panels on a home will result in less air pollution from centralized power generation,

quantifying the emission reductions and ensuring that they are permanent and enforceable would

likely be very difficult. Further, those credits would have to be created in accordance with a

future District rule, tailored to the specific proposal and which would have to be approved by

ARB and EPA.

20. WORKSHOP COMMENT

Do the adjustments to emission reduction credits required by proposed Rule 20.1(d)(5)(v)

include State and local rules or only federal rules?

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DISTRICT RESPONSE

Emission reductions required by State law or State and District rules, regulations or orders which

are approved into the SIP, or adopted and submitted to EPA for approval in the SIP, would be

considered federal requirements and, therefore, used in the Rule 20.1(d)(5)(v) adjustments. State

and local District laws, regulations, rules or orders not approved into the SIP, and not submitted

to be approved, would not be considered federal requirements.

Proposed Rule 20.1(d)(5)(v) requires that emission reduction credits be “surplus of federal

requirements” at the time they are proposed to be used as emission offsets for a federal major

project. Proposed Rule 20.1 contains a definition of “surplus of federal requirements”.

Emission reductions required by State law or State and District rules, regulations or orders which

are approved into the SIP, or adopted and submitted to EPA for approval in the SIP, would be

considered federal requirements and, therefore, used in the Rule 20.1(d)(5)(v) adjustments. Any

applicable federal emission standards would also be used in the adjustments.

21. WORKSHOP COMMENT

The Tables of Contents in Rules 20.2, 20.3 and 20.4 contain notes specifying that certain

sections of the rules will not be submitted to federal EPA for inclusion in the SIP. Aren’t all

District rules included in the SIP? Is there a table identifying which District rules are in the SIP?

DISTRICT RESPONSE

Not all District rules are in the SIP. The District has a list of rules that have been approved or

submitted to EPA for approval into the SIP, and can provide that information.

The District did not submit certain rules to EPA for inclusion in the SIP because those rules carry

out State requirements that, to date, are not needed to meet federal requirements. In general, the

rules not submitted contain more stringent air pollution control requirements and are sometimes

technology-forcing. It can be very difficult to revise a rule that has been approved by EPA into

the SIP if the District finds that some part of a technology-forcing rule requirement, and/or the

application of the requirement to a subset of affected facilities, cannot be met and the rule must

be revised.

22. WORKSHOP COMMENT

What is the closest Class I area?

DISTRICT RESPONSE

The closest Class I area is the Aqua Tibia Wilderness Area, located in San Diego County on the

northern side of Palomar Mountain, east of Interstate 15.

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23. WORKSHOP COMMENT

Landfills are unlike other permitted sources where actual emissions and potential emissions are

known or well estimated. Actual permitted emissions from a landfill may not be fully realized

until many years after the landfill has begun to operate. If the landfill is being modified, it is

difficult to apply the 80 percent test when actual emissions associated with the existing permit

for the landfill likely have not been fully realized and won’t be until near the end of the landfill’s

waste disposal life. Moreover, estimates of potential future emissions from a landfill are

necessarily somewhat uncertain since they depend on, among other things, the composition of

the waste stream, which may substantially change over time. In California, the available

information indicates that the amount of landfill gas generated per ton of waste received has

declined significantly in the last twenty years – a trend that is likely to continue.

DISTRICT RESPONSE

The District will continue to evaluate how best to consider landfill expansion project emissions

under the District’s NSR rules. The evaluation approach may be specific to a given project and

depend on factors such as whether an expansion is horizontal, vertical or both; whether landfill

gas emission controls will be expanded also and on what schedule; and whether the expansion

will result in an increase in the hourly, daily or annual emissions rates of any air contaminant.

The District is aware of the difficulties with applying NSR rules and procedures to municipal

waste landfills when an operator proposes an expansion. The gases that result from

decomposition of the waste develop over time as decomposition proceeds and as additional

waste is deposited in a landfill. For virtually all other permitted sources, actual emissions

commence as the emission unit begins operation, and occur when the unit operates and at a rate

commensurate with utilization of the unit. By comparison, at a landfill, emissions increase

gradually over many years and do not correlate with the waste deposition rate at any given time

but rather the total amount of waste deposited over many years.

24. WORKSHOP COMMENT

If an existing gasoline station is shut down and removed, and a new gasoline station is built at

the same location, is that treated as a new stationary source under the NSR rules? What if it is

under new ownership?

DISTRICT RESPONSE

The proposed revisions to the NSR rules should not change how new, modified and replacement

gasoline dispensing facilities are evaluated under the current rules.

For a simple change in ownership, NSR rules would not apply. If a change in ownership occurs

at the same time that a new gasoline station is built, the District would treat the new gas station

as a new stationary source and the NSR rules will apply. In the case where the ownership of an

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existing gas station changes and subsequently the new owner shuts down and removes the

existing station, then builds a new gas station at the same location, the District would treat the

new gas station as a replacement source and the NSR rules will likely apply. In both cases, the

new gas station would be subject to BACT under both the current and proposed revised NSR

rules. However, compliance with current gasoline dispensing facility vapor recovery

requirements contained in District Rules 61.3.1 and 61.4.1 would likely satisfy most BACT

requirements of the NSR rules.

25. WORKSHOP COMMENT

It appears the District has exempted municipalities from emission offsets.

DISTRICT RESPONSE

That is incorrect. The District is proposing to delete the provisions of current Rule 20.3(d)(6).

The District is also proposing to delete the Rule 20.1(c) definition of “Essential Public Services”

as there would no longer be any references to that term in the proposed revised Rules 20.1-20.4.

There are provisions in the current NSR rules (Rule 20.3(d)(6)) which allows emissions offsets

for an essential public service project, as defined in Rule 20.1(c), to be provided from emission

reduction credits (ERCs) in a District Bank. However, that provision has not been exercised

because first priority for use of District Bank ERCs, and any other unbanked emission

reductions, has been to demonstrate compliance with the no-net-increase permit program

provisions of the California Clean Air Act. Under that program, the District was able to revise

its emission offset requirements in 1998 from applying to sources with emissions greater than 15

tons per year to instead apply only to sources greater than 50 tons per year. That removed a

significant regulatory burden for many smaller emission sources. Since the emission reductions

not banked by other persons will continue to be used by the District in its triennial demonstration

to ARB in order to maintain the higher emission offset threshold, and not used to provide offsets

for essential public services, the District is proposing to delete the provisions of current Rule

20.3(d)(6).

26. WORKSHOP COMMENT

In regards to the federal emission offset discounting requirement, are only the emission offsets

needed for emissions above the federal offset threshold subject to the discounting?

DISTRICT RESPONSE

No. The adjustments to emission reductions and ERCs used as offsets required by EPA and

contained in proposed Rule 20.1(d)(5)(v) apply to all of the emission offsets required for a new

federal major stationary source or a federal major modification. For example, if a federal major

modification at an existing federal major stationary source of VOC results in an emissions

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increase of 65 tons of VOC per year, all of the required emission offsets (typically 65 tons per

year multiplied by the required offset ratio of 1.2 to 1.0 or a total of 78 tons VOC per year of

offsets) must be adjusted to be surplus of current federal requirements, not just the offsets for

emissions above the federal major modification offset threshold of 40 tons per year.

27. WORKSHOP COMMENT

For Prevention of Significant Deterioration (PSD) program purposes, to determine whether you

have a modification, you have to do an “actual emissions” to “potential emissions” comparison

and not an “actual emissions” to “projected actual emissions” comparison as allowed by EPA

regulations. Will the District be changing its emissions increase methodology for PSD projects?

Once District Rule 20.3.1 is approved, which was adopted to meet current EPA PSD

requirements, will PSD projects then be allowed to use EPA’s methodology?

DISTRICT RESPONSE

State law (SB288) precludes the District from changing its emissions increase calculation

methodology in the New Source Review rules, which contain existing requirements for new PSD

sources and PSD modifications. The PSD program requirements, both under EPA regulations

and under program elements contained in the District’s current NSR rules, apply to only a very

few, very large emission sources in San Diego County and not to the great majority of smaller

permitted sources in the County. Those requirements were included in the NSR rules many

years ago to meet previous EPA requirements. EPA has requested that the District not include

PSD provisions in its NSR rules or, if the provisions must remain, they not be included in the

portions of the rules that the District is requesting be approved into the SIP. ARB has stated that

the District cannot rescind the PSD provisions in its NSR/PSD Rules 20.1-20.4 because it

considers the current EPA version of those requirements to be less stringent. Accordingly, the

PSD provisions in the current rules are being retained but will be excluded from the portion of

the rules to be approved by EPA in the SIP.

The District does not currently have authority to implement the federal PSD program either by

delegation from EPA or through an EPA approved rule and likely will not have such authority in

the near future. To remedy this situation, the District adopted Rule 20.3.1 to implement the

federal PSD program by reference to the appropriate EPA regulations and thereby, upon EPA

approval, have an approved federal PSD program. An EPA-approved federal PSD program

gives the District the permitting authority for federal PSD. However, Rule 20.3.1, which

references EPA regulations as they exist on a specific date, is now significantly at variance with

the current EPA PSD regulations both because EPA has changed its legal opinion regarding the

precise statute to be referenced and because of court decisions that have revoked portions of

EPA’s PSD program regarding greenhouse gases and PM2.5. The court decisions need to be

addressed through further EPA rulemaking. It should be noted that Rule 20.3.1 would have

become effective only upon EPA approval and, therefore, is not in effect and has no bearing on

any permit actions by the District.

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The District has requested that EPA withdraw Rule 20.3.1 from consideration for EPA approval.

The District does not currently have authority to issue federal PSD permits and may not have

such authority for some time. Unfortunately, under current requirements, any new PSD

stationary source and any PSD modification at an existing PSD stationary source must obtain a

PSD permit from the federal EPA under EPA’s current regulations. The project applicant must

also obtain an Authority to Construct from the District. An Authority to Construct can only be

approved if compliance is demonstrated with all District rules, including the NSR and PSD

program elements in the District’s current NSR/PSD Rules 20.1-20.4 (or revised Rules 20.1-20.4

once approved by EPA).

As noted above, because of State law, the District cannot propose rule revisions that would allow

the use of EPA’s emissions increase calculation methodologies to apply current NSR/PSD rule

requirements. However, the District is proposing to allow the use of the EPA emissions increase

calculation methodologies, at the option of an applicant, for purposes of applying specific new

NSR requirements applicable to federal major stationary sources and federal major

modifications. This would be in addition to the use of the District’s current emissions increase

methodologies for purposes of applying all other requirements of the NSR rules.

28. WORKSHOP COMMENT

The District rules include fugitive emissions in determining if a stationary source is a PSD

stationary source, where the federal PSD regulations do not include fugitive emissions except for

a few categories of specific industries. Will the District revise its rules to be the same as the

federal rules in regards to fugitive emissions?

DISTRICT RESPONSE

The District is proposing to include the EPA procedures with regards to fugitive emissions for

purposes of determining whether a stationary source or project meets the new definitions of

federal major stationary source and federal major modifications. Because the current NSR rules

include fugitive emissions in all cases, State law (SB288) precludes the District from revising the

current NSR/PSD rules to exclude fugitive emissions in the applicability determinations for PSD

stationary source projects, (non-federal) major stationary source projects and non-major source

projects.

29. WORKSHOP COMMENT

Does Rule 20.4 apply to all portable emission units?

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DISTRICT RESPONSE

No. Many portable emission units are registered under the State Portable Equipment

Registration Program (PERP) or under the District’s registration rules. These units do not

require permits and therefore are not subject to the District’s current (nor proposed revised) NSR

Rule 20.4, with a few limited exceptions. Also, the requirements of Rule 20.4 only apply to a

new portable emissions unit requiring a District permit, to an existing permitted portable

emission unit that is being modified (including permit modifications) where emissions will

increase, or to a replacement portable emission unit that replaces an existing permitted portable

unit. Existing, permitted portable emissions units that are not being modified or replaced are not

subject to the NSR rules.

30. WORKSHOP COMMENT

Should the references in Rules 20.2, 20.3 and 20.4 to identical or like-kind replacements that,

under Rule 11, do not require new or modified District permits be moved up to the Applicability

sections of those rules?

DISTRICT RESPONSE

The District agrees and will make that change.

31. WORKSHOP COMMENT

Will the PSD provisions contained in Rules 20.1-20.4 go to the County Board of Supervisors for

approval? With regard to the State law prohibiting NSR rule relaxations, could the District argue

to ARB that since these PSD provisions were never approved by EPA, they should not be subject

to the restrictions of SB288?

DISTRICT RESPONSE

Since the existing PSD provisions are in the current approved Rules 20.1-20.4 and have been

applied by the District in the past, they are included in the revised rules that will go to the Air

Pollution Control Board for consideration of approval. The current PSD provisions are a part of

the District’s NSR rules and became effective when they were approved by the Air Pollution

Control Board many years ago. Their applicability was not contingent on EPA approval. The

District has discussed with ARB whether some or all of the current PSD provisions can be

removed from Rules 20.1-20.4. ARB responded that these existing provisions are part of the

District’s NSR program, have been applied by the District in the past and, under State law, must

be retained regardless of whether they were ever approved by EPA.

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32. WRITTEN COMMENT

The City of San Diego (City) has reviewed the District’s proposed revisions to NSR Rules 20.1-

20.4. The proposed rule amendments may have a detrimental effect on the City’s ability to

expand the Miramar Landfill’s gas (LFG) collection and control system, which is necessary to

comply with other federal, State and local regulations. The City has been attempting to permit

additional LFG flares to enhance the LFG control capacity at the site. These proposed rules may

present a significant obstacle to moving forward with the flare projects by increasing costs,

delays and imposing additional requirements that will not improve air quality. Further, these

proposed amendments threaten the viability of other future City projects at the Miramar Landfill.

Such projects will handle the future solid waste streams of the City including separation, sorting

and diversion, particularly as the Miramar Landfill reaches capacity. They will also threaten the

viability of future City projects at the North City Water Reclamation Plant; such projects will

address future reclaimed water and potable water needs of the City and are vitally important to

the region.

The following comments (itemized below following the initial District Response) do not

necessarily encompass all of the issues that may affect the City and its various departments, and

the City reserves the right to submit further comments to the APCD prior to, or at, the adoption

hearing for any proposed amendments to Rules 20.1, 20.2, 20.3 and 20.4.

DISTRICT RESPONSE

The current and proposed revised NSR Rules 20.1-20.4 do not threaten current and future

Miramar Landfill projects that are designed to comply with applicable air contaminant emission

control requirements, and which will not adversely impact air quality for surrounding

communities. In large measure, the District’s rules reflect State and federal law and ARB and

EPA regulations.

The Miramar Landfill, and its associated operations, is one of the largest stationary sources of air

contaminant emissions in San Diego County. The issues associated with the City’s comments

partially arise from the impacts of current and future landfill gas emission collection and control

systems. These systems rely on landfill gas flares and internal combustion engines fueled by

landfill gas and generating electricity. Even though the proper design and operation of these

devices are key to compliance of the Miramar landfill with District and federal air contaminant

emission control requirements, the City has contracted with separate companies to operate and

maintain these systems. While compliance will likely result in additional costs to the City, that is

true for many other affected businesses and organizations in San Diego County and has been

repeatedly found to be an acceptable impact in order to achieve and protect cleaner air and public

health. Municipal waste landfills are a unique type of air contaminant emission source and the

District will continue to work with representatives of the City to advance essential public

projects that comply with applicable District rules and State and federal law.

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33. SPECIFIC CITY COMMENT

The City is concerned with the proposed definition of “achieved in practice” in draft Rule 20.1,

Section (c)(1). Under the proposed definition, a technology or emission limit may be deemed

“achieved in practice” after demonstrating continuous compliance for only a period of six

months. For many sources, six months would be considered part of the startup of the equipment

and not reflective of the ability to achieve compliance on a long-term basis. This is especially

true of landfill gas sources (e.g., flares, engines, etc.) where gas impurities affect the equipment

and emissions change over time. Even with required cleaning, repair and maintenance, the

equipment cannot maintain the emission levels achieved during startup and initial testing. The

City recommends that the District add to the proposed definition of “achieved in practice” that

the “period of at least six months” must begin after the applicable startup period for the control

technology has been completed and a second performance test (subsequent to the initial testing)

has demonstrated compliance. In addition, it should be clarified that “achieved in practice”

cannot be based on experimental equipment or first time technology until it has been

demonstrated in at least three similar installations. Further, no definition for “reliable” or

“demonstrated” is provided, so it is unclear what criteria control technology would have to meet

before it is deemed reliable or when a technology/emission limit is demonstrated.

DISTRICT RESPONSE

The proposed definition of “achieved in practice” was based on the District’s current definition

of “proven in field application” but reduced the demonstration period from at least one year to at

least six months to conform to EPA guidance. The District recognizes that landfill gas emissions

control has unique issues. The District has reconsidered its proposal and has decided not to

rescind the current definition and use of the term “proven in field application” and not to add a

definition of “achieved in practice”. In actual application, the District looks for technologies

that have been applied on more than one project and typically that have gone through a

compliance determination more than once. However, inserting rule language which would

codify these practices would likely raise disapproval issues with ARB and EPA, and could be

counterproductive in the future application of BACT requirements.

Further, if an applicant believes that the District is inappropriately applying BACT requirements,

it may request meetings with District staff and management to resolve the matter and/or appeal

the District’s decision to the Air Pollution Control District Hearing Board. Since BACT

requirements for non-major sources were incorporated in the District’s NSR rules in 1994, the

District has made many hundreds of BACT determinations and few, if any, have been appealed

by applicants to the Hearing Board. The District has historically worked collaboratively with

applicants interested in ensuring the compliance of their projects.

Finally, there is no air quality interest in requiring applicants to install air contaminant emission

control equipment that will not perform at the level expected. However, where installed air

pollution controls cannot perform to the level expected, District Rule 20.6 may provide further

protections to an applicant. If despite all reasonable efforts the emission control levels assumed

in the analysis required for the Authority to Construct cannot be achieved, under Rule 20.6 the

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Air Pollution Control Officer may make a new determination that BACT (or LAER) is, in fact,

being used, provided an air quality impact analysis demonstrates that the actual emissions from

the source may not be expected to result in the violation of any national ambient air quality

standard or air quality increment, nor interfere with the attainment or maintenance of any

(national or State) ambient air quality standard.

34. SPECIFIC CITY COMMENT

Draft Rule 20.1, Subsection (c)(13)(i)(A), partially defines BACT as the “most stringent

emission limitation or the most effective emission control device or control technique, or

combination thereof, which has been achieved in practice and which is cost-effective for such

class or category of emission unit, as determined by the Air Pollution Control Officer..”

(emphasis on added). The City is concerned that the Air Pollution Control Officer will have

broad discretion to determine what falls within the existing terms for “class” or “category” which

are not defined in the rule. If class or category is defined broadly, for example as just “engine”,

then BACT for a diesel engine could be defined as the lowest emitting engine which would be

electric. Electric engines are not suitable for most activities at solid waste facilities, such as the

Miramar Landfill, where mobility and power are critical. A broad definition by fuel type could

result in “LFG sources” as being one category or class, which would limit the City’s options for

LFG control or energy recovery. The City recommends that the District provide clarification for

the terms for “class” or “category”, and support the use of narrow definitions that would

encompass types of sources (e.g., engine, flare, turbine, etc.), fuel type (e.g., LFG, diesel, natural

gas, etc.) capacity range and function. Emissions (and the ability to control them) vary

significantly within these categories; therefore, BACT decisions should reflect this.

DISTRICT RESPONSE

The District will not propose to define “class” or “category” of emission units in the NSR rules.

The NSR rules apply to many different types of air contaminant-emitting equipment, devices,

processes and operations. Narrow definitions of these terms, as suggested by the commenter,

would not be useful in the broad application of the rules. Nevertheless, the District has

established BACT Guidance that includes BACT determinations for classes and categories of the

most frequently permitted emission units. A review of this guidance, available on the District’s

website, demonstrates that the District, when determining BACT for a category of emission unit

such as an internal combustion engine, considers factors such as fuel type, size and type of use.

This is also the case when the District evaluates BACT for landfill gas-fueled flares and engines.

As noted above, if an applicant believes the District is incorrectly applying its BACT

requirements to a project, the applicant can ask for meetings with the District to resolve the

matter and can appeal the District’s decision to the Air Pollution Control District Hearing Board.

In the example provided by the commenter, an electric motor might be considered briefly for

certain applications seeking a permit for an internal combustion engine. In fact, some facilities

have replaced their existing IC engines with electric motors in order to create marketable

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emission reduction credits. However, if an electric motor will not satisfy the functional

requirements for a project (e.g. portability, LFG emission control, etc.) or is not technically

feasible, it would not be considered as BACT.

35. SPECIFIC CITY COMMENT

The City is also very concerned that the addition of “…as determined by the Air Pollution

Control Officer…” within the BACT definition, in Rule 20.1(c)(13)(i)(A), gives the District the

discretion to require lower-emitting alternatives, changes in fuels, and/or substitution of

equipment without any defined criteria as to when/how such decisions can be made. Applicants

are in a better position to determine whether a proposed alternative will be equivalent.

Significant operational concerns will exist if the District may decide unilaterally that a certain

alternative, even one transferred from another source category, is BACT for a proposed emission

unit.

DISTRICT RESPONSE

The proposed phrase “…as determined by the Air Pollution Control Officer…” was added to

emphasize that the class or category of emission unit is determined by the District. Nevertheless,

the phrase is somewhat redundant of the District’s approval authority embedded in Rule 20 and

will be withdrawn from the proposal. Under District Rule 20, the Air Pollution Control Officer

cannot issue an Authority to Construct or Permit to Operate if an applicant does not show that

the project under review can be expected to comply with the District’s NSR rules. It is

incumbent on the applicant to make that demonstration but the District must determine that the

demonstration is correct and sufficient. In the matter of a BACT requirement in the current and

proposed NSR rules, the District must make a determination that what the applicant has proposed

as BACT meets the requirements of the NSR rules. In the particular example cited, the District

must find that what is proposed by the applicant as BACT is the lowest emitting of any of the

four subcategories of BACT specified in Rule 20.1(c)(13)(i)(A) through (D), and meets the other

provisions of the BACT definition. It should be noted also that the paragraph (A) that is the

subject of this City comment ends with the provision that the applicant can demonstrate that a

particular emission limit, device, control technique or combination that has been achieved in

practice for the same class or category of emission unit (e.g., LFG-fueled IC engine) is not

technologically feasible for the applicant’s specific project.

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36. SPECIFIC CITY COMMENT

The City believes that the proposed BACT cost-effectiveness value for SOx, contained in revised

Rule 20.1(c)(20), is unreasonably high. The San Diego area is not a non-attainment area for SOx

and the City is unaware of any major issues with SOx emissions in the region. The City

understands that there is a concern with SOx as a precursor to PM10/PM2.5; however, if this is the

case, then the City recommends that the District instead use a BACT cost threshold of $3.33/lb

for SOx, equivalent to that of PM10.

DISTRICT RESPONSE

The District disagrees. The District arrived at the proposed cost-effectiveness threshold value

($9.00/lb) for SOx emission sources using two approaches. The cost-effectiveness values

($5.00/lb – $9.15/lb) used by the five other large California air districts (South Coast, San

Joaquin, Bay Area, Sacramento and Ventura) were reviewed to determine if a correlation could

be drawn between those values and background air quality for PM10 and PM2.5 in those air

districts. Little or no correlation was apparent. A similar analysis was done regarding each air

district’s emissions inventory – in particular, the type and distribution of SOx emission sources.

Again, no correlation was apparent. The District then chose the median of the cost-effectiveness

values of those five air districts. This value was then divided by 1.5, the larger of the BACT

cost-effectiveness multipliers used by the District, to arrive at the benchmark value of $6.00/lb

proposed in Rule 20.1.

The District would also note that, when SOx, expressed as SO2, is converted to PM10 in the

atmosphere, it is expected to be primarily in the form ammonium sulfate and ammonium

bisulfate. One pound of SO2, when converted to PM10, results in approximately two pounds of

PM10 if in the form of ammonium sulfate and 1.75 pounds of PM10 if in the form of ammonium

bisulfate. As a consequence, one pound of SO2 converted to PM10 in the atmosphere has roughly

twice the impact of one pound of directly emitted PM10 on a mass basis. This further supports a

higher cost-effectiveness benchmark for SOx than PM10.

37. SPECIFIC CITY COMMENT

Table 20.1-4 in draft Rule 20.1 proposed a BACT cost multiplier for sources with a potential to

emit above and below 15 tons per year (tpy). However, no justification or rationale is provided

for applying a cost multiplier, and no justification is provided for the multiplier chosen or why it

increases significantly after 15 tpy. As long as the source remains a minor source, then there

should be no difference in the multiplier applied. In particular, the 1.5 multiplier presents

significant difficulties because individuals would be forced to accept any limit that is up to 50%

more expensive than what is currently achieved. So unless the limit is greater than this amount,

a particular technology or emission limit would still be considered cost-effective. Further, this

could apply a more stringent standard than that used for some of the pollutants for which

numeric BACT thresholds are provided and for which the District is in non-attainment. That is,

the District is non-attainment for ozone; therefore, the BACT thresholds for NOx and VOC are

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the highest, which is expected. However, at a 1.5 multiplier, it is possible that the ultimate cost

threshold for an attainment area pollutant could end up higher than $6/lb, which seems

disproportionate and unfair.

DISTRICT RESPONSE

Under State law (SB288), the District cannot lower these BACT cost multipliers from their

current values.

The BACT Cost Multipliers specified in Rule 20.1, Table 20.1-4, are the current Rule 20.1

values which have been in effect since 1994. These values were arrived at through a

collaborative process involving representatives from affected businesses, government agencies

and other interested parties. The members representing businesses and agencies requested that

the rule be more specific as to how cost-effectiveness values were to be determined. Prior to

1994, the NSR rules specified that the cost-effectiveness threshold for BACT determinations was

that it not be “…substantially greater than the cost (in terms of dollars per unit of contaminant

controlled) of other control measures for the same air contaminant that are required to meet

stationary source and motor vehicle emission standards…” Prior to the 1994 NSR rule

revisions, the District had used a 1.5 multiplier by policy to implement the “significantly greater”

provision.

Accordingly, a specific multiplier of 1.5 was included in the adopted 1994 NSR rules. The 1994

NSR rules also included a lower BACT cost multiplier of 1.1 for smaller sources emitting less

than 15 tons per year because this was also the threshold for triggering emission offsets under a

new State law at the time. Prior to that date, the BACT threshold in the District’s NSR rules was

100 pounds per day (approximately 15 tons per year) but under the 1994 revisions, many

smaller sources were now subject to BACT because of that same new State law. The 1.1 (vs 1.5)

multiplier was an effort to reduce the economic impact of the new BACT requirements for these

smaller sources.

38. SPECIFIC CITY COMMENT

The District is proposing to add a requirement of “common ownership or common control” to

the definition of “contiguous property” in Rule 20.1(c)(19). The City does not necessarily object

to the proposed definition of “contiguous property”; however, the City would appreciate

clarification as to how the change affects the definition of “Stationary Source”. Specifically, the

City would like confirmation that multiple emission units will not be deemed part of the same

stationary source just because they sit on property that is under common ownership or control.

Rather, as required by the “Stationary Source” definition, the property housing the units and the

units themselves must be under common control to be considered part of the same (stationary)

source.

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DISTRICT RESPONSE

As noted in the response to Comment No. 12, the District is now proposing to delete the

definitions of “Contiguous Property” and “Stationary Source” from Rule 20.1 in order to

maintain internal consistency in the District rules. The definitions in Rule 2, which apply to all

other District rules unless otherwise noted, are identical to the current definitions of these terms

in Rule 20.1. The initial draft changes to these definitions in Rule 20.1 were intended to clarify

District application of the definitions and to make the District terminology more closely match

EPA terminology. As such, these draft rule amendments were not intended to result in any

changes to the District application of the definition of “Stationary Source”. To be considered as

one stationary source, multiple emission units must be under common ownership or entitlement

to use and be located on the same or contiguous properties.

39. SPECIFIC CITY COMMENT

In the revised definition of “Stationary Source” in Rule 20.1(c)(77), the District has proposed

replacing the phrase “entitlement to use” with “common control”. The City is concerned that

“common control” will be interpreted too broadly and might subject the City to penalties for

operations it has no practical ability to manage. The City urges the District to retain the phrase

“entitlement to use” because it provides a clear, fair test while the proposed language would lead

to confusion and conflict. Under the existing “ownership or entitlement to use” test, there is little

room for interpretation. If an entity owns or has the right to operate a new emission unit, they

are responsible for complying with regulations applicable to that unit. Under a “common

control” test, however, it is entirely unclear how much “control” is enough to make a permittee

responsible for emission units installed and operated by a wholly separate entity. If “common

control” is used in proposed Rule 20.1(c)(77), the City recommends a very narrow and explicit

definition for that term that clarifies under what conditions operations located on the same or

contiguous properties would be considered under common control and thus part of the same

stationary source. Co-location of one facility upon another facility’s property should not be a

key determinant in the common control determination. Rather, the City suggests a common

sense approach that focuses on the ability of one entity to exert real and demonstrative

operational control over the other’s facilities, equipment, and management.

DISTRICT RESPONSE

The District now proposes to eliminate the definitions of “Contiguous Property” and “Stationary

Source” from Rule 20.1 in order to maintain internal rule consistency. The existing definitions

in Rule 2 will apply.

The District does not see a substantive difference between the phrase “entitlement to use” and

“common control”. Rather, the District intended to make its definition more consistent with

EPA terminology. “Entitlement to use” can also involve contractual relationships which allow

one party to exert control over the operations of another (i.e., common control). If this was not

the case, regulated entities could artificially divide a stationary source by simply hiring

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contractors or establishing separate smaller companies to perform parts of an operation, and

claiming no ability to “use” the other entities’ equipment. For this reason, multiple EPA

determination letters establish criteria for assessing common control in making stationary source

determinations. In fact, contrary to the suggestion of the comment, co-location of one facility

upon another facility’s property leads to a presumption of common control for purposes of

identifying a stationary source.

40. SPECIFIC CITY COMMENT

The APCD is proposing to eliminate the exclusion of PM10 emissions from area-wide fugitive

sources from the Air Quality Impact Analysis (AQIA), i.e., air dispersion modeling. These

emissions generally include fugitive dust sources for which no direct measurement methods exist

and air modeling can be very problematic. This change is defined as being required to satisfy an

EPA requirement. The City is not aware of any federal requirement to model area-wide fugitive

emissions, and in fact, most federal programs exempt fugitive emissions from regulations unless

the sources are in one of the specified source categories. The City has no sources in the listed

categories as defined under 40 Code of Federal Regulations, Section 51.165(a)(1)(iv)(C), and

therefore is concerned about this more stringent regulation of fugitive emissions and how this

can be required by federal/EPA requirements. Other major air districts in California (e.g., South

Coast AQMD, Bay Area AQMD, San Joaquin Valley APCD, etc.) have rules that allow the

regulation of fugitive emissions but none of them require air dispersion modeling of fugitive dust

sources of PM10 as part of their AQIA requirements. For example, when modeling requirements

were triggered at the San Joaquin Valley APCD for a LFG engine project, the modeling only

included stack emissions for particulate matter less than 10 microns (PM10), excluding dust. This

is despite the fact that the San Joaquin Valley APCD does have the regulatory authority to

regulate fugitive emissions. Similar experiences have occurred in the South Coast AQMD and

Bay Area AQMD for landfills in those jurisdictions. As such, it is not apparent to the City why

the District would be obligated to require inclusion of area-wide fugitive sources, which would

be a more stringent position than taken in other districts. Furthermore, the City does not believe

that accurate emission estimates and modeling can be conducted for such sources, which would

render any results of such an AQIA meaningless.

DISTRICT RESPONSE

The District is proposing to remove the exclusion of area fugitive emissions increases of PM10

from the air quality impacts analysis requirements of Rules 20.2, 20.3 and 20.4 because the

federal EPA has objected to that exclusion. In order to obtain EPA approval of the revised rules,

the current explicit exclusion of fugitive PM10 emissions from air quality impact analyses must

be removed from the rules. EPA commented that, under its regulations, all PM10 emissions

including area fugitive emissions must be included in the air quality impacts analysis. EPA staff

assured the District that other California air districts were doing so.

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In the example cited in the comment, where a landfill gas-fueled engine was proposed in the Bay

Area AQMD, only stack emissions for PM10 were apparently included in the air quality impact

analysis. This is not surprising since such a project would not be expected to result in an

increase in area fugitive emissions of PM10 and only emission increases are typically subject to

AQIA requirements. Moreover, the Bay Area AQMD’s thresholds for conducting an air quality

impact analysis are different than those in this District’s current NSR rules.

The District will continue to evaluate how other California air districts approach this matter and

will develop procedures for the implementation of this change.

41. WRITTEN COMMENT

Thank you for the opportunity to provide comments regarding the proposed amendments to

the NSR rules, specifically Rule 20.1. The City of San Diego's Public Utilities Department

( P U D ) supports the continuation of improving air quality and additional prevention

measures that are practical, cost-effective and have scientific or engineering data

documenting their effectiveness.

The PUD operates and maintains the San Diego water distribution and sewerage system by

providing an essential public service that ensures the quality, reliability, and sustainability

of water, wastewater, and recycled water services for the benefit of the ratepayers and

citizens. We serve 2.4 million residents within the City and 15 municipalities over a 450

square mile area. We have approximately 150 permits to operate issued by the District for

facilities and equipment within the Department.

Please note the following concerns regarding the subject rule:

a. Contiguous Property (NSR Rule 20.1, Section (c)(19)) – the definition of

"contiguous property" allows for extreme interpretations that could view that all

PUD facilities are connected by a process line or stationary materials-handling

equipment. The definition, as written, does not take into account the inherent nature

of a water distribution system and a wastewater conveyance system because, in

essence, pipelines and facilities are interconnected throughout a 450 square mile area

and under common ownership and control. A clear delineation or exemption needs

to be written into this definition for municipalities that operate extensive water and

wastewater conveyance systems.

b. Metro Biosolids Center (MBC) – The PUD operates this solids handling facility

at Convoy Street and I-52; it dewaters and disposes of approximately 100 tons of

dewatered biosolids on a daily basis. MBC is located adjacent to the Miramar

Landfill; the PUD has no control over the operation of the landfill because the

facilities are funded by different sources and managed by entirely different

departments. MBC has extremely low emissions but is mandated to comply with the

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Federal Title V program due to the contiguous property definition. It is fiscally

imprudent to use tax payers dollars for Title V participation at MBC because the site

does not trigger any major source emissions thresholds and compliance does not

result in any emissions reduction at the site. For these reasons, we propose the

District re-evaluate their interpretation of "contiguous property."

c. North City Water Reclamation Plant (NCWRP) – The PUD operates this water

reclamation plant that reclaims approximately 15 million gallons per day of

wastewater. It is located at I-805 and Miramar Road. We are in receipt of written

documentation from District engineering staff that they view the Miramar Landfill,

the NCWRP and the privatized energy provider, Fortistar (located adjacent to MBC)

as one facility. This interpretation of "contiguous property" is not only impractical

but also flawed because Fortistar is not owned or controlled by the City of San

Diego. The interpretation could significantly impact Pure Water San Diego which is

a 20 year program to provide a safe, reliable and drought-proof local drinking water

supply for San Diego. NCWRP is a critical site in the initial phase of this program

that will eventually account for one third of San Diego's future water supply.

In brief, the Public Utilities Department urges the District to re-evaluate their interpretation

of "contiguous property" with respect to water distribution and sewerage systems because it

does not take into account the inherent nature of the connectivity of these systems that

provide an essential public service to millions of residents and businesses.

DISTRICT RESPONSE

The District is now proposing not to revise the definition of “contiguous property” but instead is

proposing to delete this definition entirely from Rule 20.1, since it is already defined in District

Rule 2. The existing definition in Rule 2 is the same as the current definition in Rule 20.1. The

proposed revisions to the definition of “contiguous property” were intended to clarify, consistent

with existing APCD application of the definition, that otherwise unrelated sources connected

solely by serving utilities’ electrical, water, or sewer lines are not considered to be a single

stationary source. The revised definition was not designed to change the way the City of San

Diego PUD facilities are treated for purposes of stationary source determinations.

Individual stationary source determinations will continue to be made on a case-by-case basis

consistent with District rule definitions, EPA guidance and determinations, and relevant legal

authority. As noted in Response to Comment 32, to be considered as one stationary source,

multiple emission units must be under common ownership or entitlement to use and be located

on the same or contiguous properties. As such, emission units under different ownership may be

considered a single stationary source in some circumstances.

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Aggregation of sources for purposes of Title V is done in accordance with Regulation XIV,

which contains a separate definition of “contiguous property,” which the District is not proposing

to change. The City may apply under Regulation XIV to have the District reevaluate its

determinations regarding the MBC and Title V.

42. WRITTEN COMMENT

We at the Navy thank you for the opportunity to comment on potential changes to the District’s

NSR rules. As addressed during the public workshop on May 7, 2015, the Navy seeks an

amendment to Rule 20.1 with regards to shipboard emission units and activities performed by

uniformed personnel. Specifically, the Navy seeks to add the following exemption to Rule

20.1(b):

"(7) Existing emission units and routine operational and maintenance activities

performed by uniformed personnel onboard naval vessels, including routine maintenance

painting performed by uniformed personnel."

Additionally, the Navy seeks the following exemption to Rule 20.1(b):

"(8) Any emission unit for which a permit is required solely due to a change in

district permitting policy, provided the unit was operated in San Diego County at any time

prior to December 17, 1997"

The definition of "new emission unit" would comport with the ordinary definition of a new

source – the construction or modification of an emission unit – and not merely a new policy to

permit. This suggested language takes into account that Navy sailors have been performing

routine operations and maintenance on ships in San Diego County for decades and therefore the

associated emissions should not be considered a new source.

As you may be aware, the Navy is currently negotiating a permit for shipboard marine coating

operations at Naval Base San Diego (NBSD). This draft permit is the first attempt to permit the

marine coatings applied by active duty, uniformed sailors on operational naval vessels. Our

active duty sailors are engaged in touch-up maintenance that is incidental to their daily duties

when or if painting might be necessary. This is separate and distinct from any marine coatings

that are applied when a vessel is out of operational status and subject to a maintenance overhaul.

That work is performed by civilian contractors and is already subject to a permit. The civilian

contractors are professional painters who are contracted by the Navy to perform larger-scale maintenance functions. By contrast, our active duty personnel have other primary duties that are

unrelated to professional painting. Those sailors perform smaller-scale maintenance only when

required between professional overhauls.

The Navy is not seeking an exemption from the permit itself. Instead, the Navy is seeking an

exemption from NSR application to emissions that have historically existed in the air basin and

undertaken by sailors onboard ships in support of the Navy's national defense missions. NSR

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should not apply to routine maintenance activities such as marine coating performed by

uniformed personnel as such activities have been ongoing for decades. Rule 20.1 should be

amended accordingly as this is not a new source of emissions for San Diego. San Diego has

been host to Navy vessels since NBSD was established in 1922 and such maintenance activities

aboard naval vessels have been routinely conducted in San Diego since that time. NBSD has

expanded and contracted several times during its history but has been within its current footprint

for many decades. Applying NSR to an existing source is incongruous with the context of NSR

rules which address increase of air pollutants due to new construction or modification. Here,

there is no new construction and no modification; this is an existing source. The only new

circumstance is the request for a permit on a source of emissions that has existed in its current

form for decades. The requested amendments to Rule 20.1 are not a relaxation or reduction that would result in

increased air pollution. Exempting existing and routine maintenance ships' force marine coating

from NSR does not undermine air quality in San Diego and does not violate the Protect

California Air Act of 2003 (CA Health and Safety Code Section 4255-42507). The goal of that

statute is to not further undermine air quality and not to impede the State's ability to adopt its

own permitting program. An exemption for long-standing routine operational and maintenance

activities by ships' force does not undermine those goals. Again, the context of the statute

emphasizes new construction, significant modification and the permitting of increased emissions.

The underlying message is that the district is constrained from authorizing an increase in air

pollution that could undermine the current air quality. The estimated emissions provide for no

significant impact to current air quality. Not only does the permit now under negotiation

represent no net increase in air emissions over the status quo, but total volume that would be

regulated by the draft permit is less than the threshold for PSD modification (less than 40 tons)

and less than the threshold for major source modification (less than 25 tons). There is no

increase in emissions being considered.

The Navy is committed to ensuring compliance with air quality rules and regulations. It is

important to the Navy to work collaboratively with the District to develop an approach to

regulation that preserves our ability to meet our operational requirements, comply with the law,

and improve the air quality in San Diego.

DISTRICT RESPONSE

The changes proposed by the comment would be prohibited by State law (SB 288), codified at

California Health and Safety Code Section 42500 et. seq. The Act provides that, “No air quality

management district or air pollution control district may amend or revise its new source review

rules or regulations to be less stringent than those that existed on December 30, 2002.” Cal.

Health and Safety Code Sec. 42504(a). Simply put, the revisions suggested by the comment

would render the District’s rules less stringent because ships’ force painting would be exempted

from NSR, and sources which the District sought to bring into the permit system would be

exempt unless they were previously listed specifically in Rule 11.

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The District is not only regulating the Navy’s ships’ force painting, but also all other similar

sources which do not fall under the exemption from permitting at Rule 11(d)(15). The operation

described by the comment required a permit since the time at which its emissions exceeded those

thresholds in Rule 11. The fact that the District may have been unaware that those thresholds

were exceeded and were of a significant magnitude at some point in the past is immaterial to

whether a permit was required. At the point at which the thresholds were exceeded, the

operation was required to be permitted. This is the same for any source which is no longer

exempt under the terms of Rule 11.

The proposed potential to emit from the operation referred to in this comment is greater than 17

tons per year of VOC. Other ships’ force painting operations in San Diego County are also

likely to be of a significant magnitude. As such, the District must require permits for these

sources, and the requirements of NSR ensure that the emissions from those sources are

adequately controlled to ensure that District progress towards attainment is not hindered.

See also the District’s response to Comment No. 2.

43. WRITTEN COMMENT

Under the proposed definition of “Contemporaneous Net Emission Increase” in Rule 20.1,

creditable emission reductions must occur within a five‐year period that includes the year a new

permit unit will begin operation and the four years prior to that year. The actual emission

calculations in Rule 20.1(d)(ii) links the baseline emission calculations for existing units to the

actual emissions during the five years prior to submitting a permit application (for example, a

permit application to replace existing units with new units). NRG requests that the District

clarify in the revised regulation that the baseline emissions for existing units and the

corresponding creditable emission reductions for the shutdown of this equipment remains

linked to the actual emissions occurring during the five years prior to submitting a permit

application for a given project. In other words, these baseline emissions/creditable emission

reductions would remain unchanged even if two or three years passed between submitting a

permit application for an equipment replacement project (that would include emission reductions

for the shutdown of existing equipment) and when the new unit(s) are constructed and begin

operation. We also request that the District clarify that this regulatory change does not apply to

permitting projects for which the District has already issued a Final Determination of

Compliance (FDOC) and/or an Authority to Construct (ATC).

DISTRICT RESPONSE

The contemporaneous period being specified in the proposed rule definition is being clarified but

not changed from the current Rule 20.1 definition. The contemporaneous period is the calendar

year in which the proposed new, modified, relocated or replacement emissions unit is expected to

commence operation and the four years preceding that calendar year. The proposed revisions to

the definition of “Contemporaneous Net Emissions Increase” in Rule 20.1(c)(18) were in

response to EPA objections to the current Rule 20.1 definition. EPA’s NSR regulation at 40

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CFR 51.165 (a)(1)(vi)(A)(2) requires that, in order to be used to reduce a contemporaneous net

emissions increase total, an emissions decrease must be contemporaneous with the emissions

increase under review (i.e., must occur within the contemporaneous period) and be otherwise

creditable.

This is a different five-year period than the review period used to determine actual emissions of

an existing emission unit. For purposes of determining actual emissions in order to quantify the

pre-project potential to emit of an existing emissions unit, the review period is the five years

preceding the date of receipt of the application to modify, relocate or replace the emission unit,

as specified in Rule 20.1(d)(2)(i). For purposes of determining actual emissions in order to

quantify an actual emissions reduction from an existing emissions unit, the review period is,

again, the five years preceding the date of receipt of the application to create the emission

reduction, as specified in Rule 20.1(d)(2)(ii).

In the case of a replacement of an existing emission unit with a new emission unit, Rule

20.1(d)(3)(iv) specifies that the emissions increase from a replacement unit is calculated as the

replacement emission unit’s post-project potential to emit minus the existing emission unit’s pre-

project potential to emit. The pre-project potential to emit of the existing emission unit being

replaced is determined from either the unit’s permitted emissions, if located at a non-major

stationary source; or, if located at a major stationary source, the pre-project potential to emit is

based on the unit’s actual emissions, as specified in Rule 20.1(d)(2)(i), during the most

representative two years within the five year period preceding receipt of the application to

replace the unit. Once the emissions increase is determined, then that increase is included in the

five-year contemporaneous net emissions increase period specified in Rule 20.1(c)(18).

44. WRITTEN COMMENT

Rule 20.3(d)(5), emission offsets for federal major stationary sources and federal major

modifications – Under the proposed change to Rule 20.3(d)(5), for new federal major

stationary sources and federal major modifications, the amount of ERCs must be adjusted to

current federal regulatory requirements at the time of use. We request that the District clarify

what is meant by “surplus of federal requirements at the time such emissions reductions and

ERCs are used as offsets.” Specifically, NRG requests that the District identify the types

of federal regulatory actions (i.e., federal new source performance standards, federal

maximum achievable control technology standards, etc.) that must be reviewed as part of the

ERC surplus analysis. We also request that the District clarify that this regulatory change does

not apply to permitting projects for which the District has already issued a FDOC and/or ATC.

DISTRICT RESPONSE

A new definition of “Surplus of Federal Requirements” is proposed in Rule 20.1(c)(79). The

definition specifically includes measures in the San Diego portion of the SIP; measures adopted

by the Board and submitted for approval into the SIP; standards and requirements promulgated

under Sections 111 (NSPS) or 112 (NESHAPs) of the Clean Air Act; standards or requirements

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of the Acid Rain Program under Title IV of the Clean Air Act or regulations promulgated

thereunder; District or State laws, rules, regulations or orders that carry out stationary source

emission reduction measures contained in the SIP, the Clean Air Act or federal law; terms or

conditions of an Authority to Construct imposed pursuant to 40 CFR Parts 60, 61, 63, 52.21 or

51, Subpart I; and, emission reductions already approved as ERCs or otherwise committed for

air quality purposes, including as emission offsets. (Note: the preceding list is an abridged

version of the proposed rule definition.)

The proposed revisions to District NSR Rules 20.1 – 20.3 do not affect the standing of any Final

Determination of Compliance or Authority to Construct issued under current Rule 20.1. This is

provided for in Rule 20.1, Subsection (e)(1). Moreover, the District will be recommending to the

Air Pollution Control Board that the proposed revisions to Rules 20.1, 20.2 and 20.3 only

become effective upon approval by EPA into the San Diego portion of the SIP.

45. WRITTEN COMMENT

Rule 20.3(d)(2)(ii), AQIA must include both directly emitted PM10/PM2.5 and PM10/PM2.5 that

will condense after discharge to the atmosphere – Under this proposed change to Rule 20.3,

permitting projects will be required to include the modeling of condensable PM10/PM2.5 impacts

as part of the air quality impact analysis prepared for a new project. Since the proposed new

requirement in Rule 20.3(d)(2)(ii) to model condensable PM10/PM2.5 impacts appears to be

linked to a May 20, 2014, EPA guidance regarding PM2.5 modeling for projects that trigger PSD

permitting, NRG requests that the D i s t r i c t revise the regulation to make it clear that

this new modeling requirement is applicable only to new federal major stationary sources and

federal major modifications. In addition, because the EPA PM2.5 modeling guidance is often

times too general to be useful, we request that as part of this regulatory change the District

prepare a detailed modeling guidance showing the acceptable approaches that can be followed

when performing a condensable PM10/PM2.5 modeling analysis. We also request that the

District clarify that this regulatory change does not apply to permitting projects for which the

District has already issued a FDOC and/or ATC.

DISTRICT RESPONSE

The District does not consider proposed new Subsection (d)(2)(ii) of Rule 20.3 to be a new

requirement. Rule 20.3(d)(2)(ii) is a proposed new provision required by EPA (see 40 CFR

51.165(a)(1)(xxxviii)(D)) that replaces current Rule 20.3(d)(2)(i), (ii), and (iii) wording that

specifies, “If a PM10 AQIA is required, the AQIA shall include both directly emitted PM10 and

PM10 which would be formed by precursor air contaminants prior to discharge to the

atmosphere.” The District has already been using emissions increases that include the

condensable fractions of PM10 and PM2.5 emissions in AQIA for some time. The District’s test

method for determining compliance with permit conditions that specify PM10 or PM2.5 emission

rates include the condensable fractions in the test results and has done so for many years.

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As noted above, Rule 20.1(e)(1) – Continuity of Existing Permits, provides that conditions of

any Authority to Construct (an FDOC has the same standing as an Authority to Construct) or

Permit to Operate issued prior to the rule adoption date shall remain valid and enforceable for the

life of the Authority to Construct or Permit to Operate, unless specifically modified by the

District. Moreover, the changes to Rule 20.3 will not become effective until approved by EPA

into the SIP.

46. WRITTEN COMMENT

Rule 20.3(e)(3), requirement for a Class I visibility analysis for federal major stationary

sources and federal major modifications – This proposed rule change requires the analysis of

Class I visibility impacts for new stationary sources and federal major modifications. Because

these types of visibility impact analyses can oftentimes be difficult to perform, we request that

the District include an exemption from this analysis based on the distance from a proposed

project to the nearest Class I area. An example of such an exemption from Class I visibility

impact analyses is included in SCAQMD Rule 1303(b)(5)(C). We also request that the District

clarify that this regulatory change does not apply to permitting projects for which the District

has already issued a FDOC and/or ATC.

DISTRICT RESPONSE

Since screening procedures and EPA guidance can evolve over time, the District does not believe

it is appropriate to codify a screening procedure in its NSR rules. A screening procedure for

sources located more than 50 kilometers from a Class I area is found in the report “Federal

Land Managers’ Air Quality Related Values Work Group (FLAG), Phase I Report—Revised

(2010), Natural Resource Report NPS/NRPC/NRR—2010/232, provided by EPA Region 9. The

procedure calculates a ratio of the aggregate annual emissions (based on 24-hour maximum

allowable emissions) of SO2, NOx, PM10 and H2SO4, in tons per year (Q), divided by the

distance (D), in kilometers, from the Class I area. If the (Q/D) ratio is equal to or less than 10,

the project is not expected to impair visibility in the Class I area and no additional visibility

analysis is required. If more than 10, additional visibility impact analysis is required –

approaches are discussed in the same “FLAG 2010” report.

Given the federal major source and federal major modification emission thresholds proposed in

the revisions to Rule 20.1, the District expects few projects will trigger this new federal

requirement for a Class I Area visibility impairment analysis.

The Class I Area visibility impairment analysis requirement contained in new Subsection (e)(5)

of revised Rule 20.3 will not apply to projects for which an Authority to Construct or Final

Determination of Compliance has already been issued (see Rule 20.1(e)(1)) unless the project is

modified by the applicant, or the ATC or FDOC is modified by the District, subsequent to

revised Rule 20.3 becoming effective. The revisions to Rule 20.3, including the new visibility

impairment analysis requirement in proposed Rule 20.3(e)(3), will not become effective until

Rule 20.3 is approved by EPA into the SIP.

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47. WRITTEN COMMENT

The City of San Diego (City) attended the May 7, 2015, San Diego County Air Pollution

Control District (APCD) "Workshop for Discussion of Proposed Amendments to New Source

Review Rules 20.1, 20.2, 20.3, and 20.4." The City submitted written comments prior to the

workshop and has the following additional comments for the District’s consideration.

The City has reviewed the draft rules in the context of their potential impacts on those

facilities owned and operated by the City's Environmental Services Department (ESD) and

upon ESD's operations, including those at the Miramar Landfill. The City's comments focus

on those amendments that will have the greatest impact on the City's ability to provide cost-

effective waste management services to its residents. At the present, the proposed rule

amendments may have a detrimental effect on the City's ability to expand the Miramar

Landfill's landfill gas (LFG) collection and control system, which is necessary to comply with

other federal, State, and local regulations for LFG emission control. The City has been

attempting to permit additional LFG flares to enhance the LFG control capacity at the site.

These proposed rules may present a significant obstacle to moving forward with the flare

project by increasing costs, delays, and imposing additional requirements that will not

improve air quality.

Further, these proposed amendments threaten the viability of other future City projects at the

Miramar Landfill. Such projects will handle the future solid waste streams of the City

including separation, sorting, and diversion, particularly as the Miramar Landfill reaches

capacity. They also threaten the viability of future City projects at the North City Water

Reclamation Plant. Such projects will address future reclaimed water and potable water needs

of the City and are vitally important to the region.

The below comments do not necessarily encompass all of the issues that may affect the City

and its various departments, and the City reserves the right to submit further comments to

the District prior to or at the adoption hearing for any proposed amendments to Rules 20.1,

20.2, 20.3, and 20.4. The City's comments are identified by rule number, and then section

number within each rule.

DRAFT RULE 20.1

Section (a) – Applicability: Please add the following language to the end of the

paragraph: "Identical and like-kind replacements as specified in Rule 11, and

subject to the limitations contained in Rule 11, shall not be considered subject to

the requirements of Rules 20.1, 20.2, 20.3 and 20.4 applicable to a replacement

emission unit." Due to nature of operations at the City landfills, equipment is

periodically replaced. In many cases, these are like-kind replacements. This rule

clarification would help establish that these replacements would not be subject to

NSR requirements.

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Section (c) – Definitions: As defined, "Project" could include open applications for

entirely unrelated operations. Please modify this definition to clarify that a project

only includes open applications that are related by being part of the same process,

construction timeframe, planning document, or funding mechanism. At any given

time, a landfill may have a number of applications pending for unrelated processes.

These open applications should not be considered part of one project and should not

trigger additional requirements unless they are otherwise connected.

Section (d)(1)(i)(C): Please clarify that the “Calculation of Pre-Project Potential to

Emit for Modified Emission Units Located at Major Stationary Sources” applies only

to the pollutant(s) for which the facility is major. As currently written, this provision

may apply to all pollutants whether or not they are pollutants for which the facility is

major. For example, a typical landfill may be major for VOCs and may operate many

NOx sources, such as tub grinders, generators, etc., that need to be replaced or

modified from time to time. The procedures in Section (d)(l)(i)(C) would result in an

overestimated emission increase if the unit's actual emissions are much lower than its

potential to emit. This would make sense for the pollutant(s) for which the facility is

major, but seems overly conservative (and inconsistent with Rule 20.2) for pollutants

for which the facility is non-major.

Section (d)(2)(i)(A): Please add to the end of the paragraph: "…, unless the

applicant can demonstrate, to the satisfaction of the APCO, that another time period

would be more representative of the facility's actual emissions."

Section (d)(3)(iii): Please add "Identical and like-kind replacements as specified in

Rule 11, and subject to the limitations contained in Rule 11 are excluded."

DRAFT RULES 20.2, 20.3 AND 20.4 Many of the Definitions and General Provisions of Rule 20.1 are used in draft Rules 20.2,

20.3, and 20.4. The City has the same comments as above on the Definitions and General

Provisions that are carried over from Rule 20.1.

Rules 20.2, 20.3 and 20.4: Please move the Identical and like-kind replacements

exclusion to the “Applicability” section.

Rules 20.2(d)(1) and 20.3(d)(1): Please clarify the intended effect of adding "and

project" to the sentence "The Air Pollution Control Officer shall deny an Authority to

Construct or modified Permit to Operate for any emission unit and project subject to this

rule...". Does this change indicate that BACT applicability will be evaluated based on

the project's potential to emit instead of the individual emission unit's potential to emit?

If so, this change could make BACT applicable to very low emitting operations that may

be part of the same overall project. Please explain the basis for this requirement in the

context of the permit program, which is based on permitting individual emission units or

processes. The change also seems to indicate that the District will deny an Authority to

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Construct and a Permit to Operate for an entire project where only one unit does not

meet the listed requirements. Is that the intention?

DISTRICT RESPONSE

The Miramar Landfill, and its associated operations, is one of the largest stationary sources of air

contaminant emissions in San Diego County. The issues associated with the City’s comments

partially arise from the impacts of current and future landfill gas emission collection and control

systems. These systems rely on landfill gas flares and internal combustion engines fueled by

landfill gas and generating electricity. Even though the proper design and operation of these

devices are keys to the compliance of the Miramar Landfill with District and federal air

contaminant emission control requirements, the City has contracted with separate companies to

operate and maintain these systems and in the past persuaded the District to treat them as

separate sources.

The current and proposed revised NSR Rules 20.1-20.4 do not threaten current and future

Miramar Landfill projects that are designed to comply with applicable air contaminant emission

control requirements, and which will not adversely impact air quality for surrounding

communities. In large measure, the District’s rules reflect State and federal law and ARB and

EPA regulations. While compliance with current District rules will likely result in costs to the

City, that is true for many other affected businesses and organizations in San Diego County and

has been repeatedly found to be an acceptable impact in order to achieve and protect cleaner air

and public health. The District recognizes that municipal waste landfills are a unique type of air

contaminant emission source and will continue to work with representatives of the City to

advance essential public projects that comply with applicable District rules and State and federal

law.

The following responds to the City of San Diego’s specific comments:

DRAFT RULE 20.1

Section (a), Applicability: Please add the following language to the end of the

paragraph: "Identical and like-kind replacements as specified in Rule 11, and

subject to the limitations contained in Rule 11, shall not be considered subject to the

requirements of Rules 20.1, 20.2, 20.3 and 20.4 applicable to a replacement emission

unit."

The District agrees and will implement the suggested change. See also the response to

Workshop Comment No. 30.

Section (c), Definitions: As defined, "Project" could include open applications for

entirely unrelated operations. Please modify this definition to clarify that a project

only includes open applications that are related by being part of the same process,

construction timeframe, planning document, or funding mechanism.

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The District will not make the suggested change to the Rule 20.1(c) definition of the term

“Project”. The current Rule 20.1 definition of project has been in place for many years.

The change proposed by the City would almost certainly be viewed by ARB as a rule

relaxation and contrary to State law. Projects are evaluated under the current and

proposed NSR rules for several reasons, including: to ensure that the aggregated

emission increases will not cause adverse air quality impacts; to include the aggregated

emission increases in the contemporaneous net emissions increase tally for major

stationary sources; and, under the proposed revised rules, to determine whether the

emissions of the same air contaminant from multiple emission units could be controlled

more effectively by a common emission control device. The first case is appropriate to

protect air quality and public health even if equipment/operations emitting the same air

contaminant are physically separated, are not operationally related, or do not commence

operations at the same time. Aggregating emission increases (and certain qualified

decreases) occurring at the same stationary source within the contemporaneous period

(five years in the case of the District’s current and revised regulations) is required by

federal EPA regulations. As to the application of air contaminant emission control

technology to multiple emission units under District permit review as part of a project,

this would only be required if the evaluation concludes that the control of multiple

emission units is technologically feasible, lowest emitting and cost-effective. The

District is unlikely to reach such a conclusion in the case of unrelated emission units that

are located some distance apart, are operationally independent and emitting different air

contaminants.

Section (d)(1)(i)(C): Please clarify that the “Calculation of Pre-Project Potential to

Emit for Modified Emission Units Located at Major Stationary Sources” applies only

to the pollutant(s) for which the facility is major.

The District does not believe this change is needed. Section (a) – Applicability, of Rule

20.1, will include proposed new language stating, “Except as specified herein, the

provisions and requirements of this rule shall be applied on an air contaminant – specific

basis.” Also, the proposed revised Rule 20.1, Section (d) – Emission Calculations,

already includes new introductory language stating, “The emission calculation provisions

and requirements of this Section (d) shall be applied on an air contaminant-specific

basis.” These proposed Rule 20.1 revisions should be sufficient to ensure that Rule

20.1(d)(1)(i)(C) is applied on an air contaminant-specific basis.

Section (d)(2)(i)(A): Please add to the end of the paragraph: "…, unless the

applicant can demonstrate, to the satisfaction of the APCO, that another time period

would be more representative of the facility's actual emissions."

The District disagrees with the change requested by this comment. This change would

likely be considered a relaxation of existing NSR rule requirements and contrary to state

law. Proposed Rule 20.1(d)(2)(i)(A) refers to cases where actual emissions are used to

determine the pre-project potential to emit of an emissions unit and derives from an

existing provision in current Rule 20.1. Specifically, current Rule 20.1(d)(2)(i)(B)

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provides (in the case of an existing unit with no permit conditions that limit emissions)

that, “The Air Pollution Control Officer may base the pre-project potential to emit on the

highest level of emissions occurring during a one-year period within the five-year period

preceding the receipt date of the application…”. This provision was relocated to

proposed revised Rule 20.1(d)(2)(i)(A) and modified slightly to refer to “…the highest

level of hourly, daily and yearly emissions, respectively, occurring during a twenty-four

consecutive month period representative of normal operations within the five-year period

preceding the receipt date of the application.” The City’s requested addition to

(d)(2)(i)(A) appears to suggest using actual emissions data for a unit from more than five

years prior to the date of application. The District’s NSR rules have used the five-year

look back period for determining past actual emissions for many years. Considering

emission levels from more than five years prior to filing an application would likely only

be chosen by an applicant if those older emission levels were higher, thus giving a lower

calculated emissions increase for the modification to the unit. This would be

unrepresentative of the proposed modification’s impact on current air quality and, again,

would be considered a rule relaxation prohibited by State law.

Section (d)(3)(iii): Please add "Identical and like-kind replacements as specified in

Rule 11, and subject to the limitations contained in Rule 11 are excluded."

The District does not believe this change is needed. The District has already proposed

similar new language in Rule 20.1, Section (c), for the definition of “Replacement

Emission Unit”. Also, the District will add the Rule 11 replacement unit exclusion to

Sections (a) – Applicability of Rules 20.1, 20.2, 20.3 and 20.4.

DRAFT RULES 20.2, 20.3 AND 20.4

Rules 20.2, 20.3 and 20.4: Please move the Identical and like-kind replacements

exclusion to the “Applicability” section.

The District agrees and will make this change. See also Workshop Comment No. 30.

Rules 20.2(d)(1) and 20.3(d)(1): Please clarify the intended effect of adding "and

project" to the sentence "The Air Pollution Control Officer shall deny an Authority to

Construct or modified Permit to Operate for any emission unit and project subject to this

rule...". Does this change indicate that BACT applicability will be evaluated based on

the project's potential to emit instead of the individual emission unit's potential to emit?

If so, this change could make BACT applicable to very low emitting operations that may

be part of the same overall project. Please explain the basis for this requirement in the

context of the permit program, which is based on permitting individual emission units or

processes. The change also seems to indicate that APCD will deny an Authority to

Construct and a Permit to Operate for an entire project where only one unit does not

meet the listed requirements. Is that the intention?

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The intent of adding “and project” to the opening sentences of Rule 20.2(d)(1) and

20.3(d)(1) is to refer to the BACT-for-projects provisions of Rule 20.2(d)(1)(v) and the

BACT/LAER-for-projects provisions of Rule 20.3(d)(1)(vi). BACT applicability will

continue to be based on each emission unit’s potential to emit and emission increases, not

on a project’s potential to emit. The proposed new Subsection (d)(1)(v) of Rule 20.2

applies where a project “…consists of multiple….emission units required by this

Subsection (d)(1) to be equipped with BACT…” This language was used to make clear

that the project BACT provision would only apply to units in the project already required

to comply with BACT. BACT would not be extended to other units in the project that

would not individually trigger BACT. Similar language is used in Rule 20.3(d)(1)(vii),

the proposed new BACT/LAER-for-projects provision.

The project BACT (and BACT/LAER) provisions were added to make explicit that in

cases where multiple similar emission units with similar discharge characteristics are

being permitted concurrently, the District has the authority to evaluate whether emission

control technologies can be applied effectively to multiple units. Neither the evaluation,

nor application of a common/shared control technology, would necessarily change the

structure of the permitting. Units could still receive separate permits, each containing

provisions applicable to the shared control technology.

As to the denial of an entire project if one emission unit cannot meet the rule

requirements, it is not clear whether such a situation would arise. If the District

determines that an individual unit can meet unit-specific BACT but it is not

technologically feasible or not lowest emitting to include the unit in a common emission

control technology being considered as part of project-BACT, then the evaluation and

permitting can certainly reflect this. However, if an individual unit cannot comply with

unit-specific BACT, the permit for that unit would be denied. An applicant can certainly

propose a revision to the project that does not include the non-complying emission unit.

48. WRITTEN COMMENT

Calpine's affiliate, Otay Mesa Energy Center LLC, operates an approximately 619-megawatt

("MW") natural gas-fired combined cycle power plant known as Otay Mesa Energy Center

("OMEC"), which constitutes a major stationary source within the District. Calpine is

concerned that, in responding to EPA's reported comments on the District's existing rules by

eliminating a paragraph from the calculation methodologies for major stationary sources,

the proposed revisions to Rule 20.1 would cause many minor changes to existing emissions

units to trigger the requirements of prevention of significant deterioration (PSD) and New

Source Review (NSR) in circumstances where the change would not trigger PSD or NSR

under either the District's existing rules or the corresponding federal PSD and nonattainment

NSR regulations.

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Because the current version of District Rule 20.1 predates the Protect California Air Act of

2003, otherwise known as "Senate Bill (SB) 288", we would strongly encourage the District

to retain this paragraph and respond to EPA's comments by instead adding a federal

"backstop" provision to Rule 20.1, which would prevent major stationary sources from

relying upon the calculation method authorized by this paragraph where the change would

constitute a "major modification" under the federal regulations. Another California air district

has recently adopted a similar federal backstop provision in response to EPA comments that

the applicability tests and calculation procedures reflected by that district 's existing rules

could allow federal major modifications to escape PSD/NSR review. Importantly, the

addition of such a federal backstop is fully consonant with the requirements of SB 288, as it

would in no way represent a relaxation of the calculation methods or applicability procedures

that existed in the District's NSR program as of December 30, 2002, but would in fact

increase the stringency of the existing NSR program.

DISTRICT RESPONSE

The District agrees with the request to reinstate the existing last paragraph of Rule

20.1(d)(1)(i)(C), with a backstop provision to address EPA’s concerns. That paragraph was

deleted at EPA’s request as there is no similar provision in EPA’s regulations. The deletion of

this paragraph will be withdrawn. Instead, the District will propose the following revisions to

the paragraph, which will become paragraphs (3) and (4) under Subsection (d)(1)(i)(C):

(3) Notwithstanding paragraphs (1) and (2) above, if an Authority to Construct has

previously been issued for an emission unit pursuant to New Source Review rules for the

District, and the previous emission increases that resulted from that emission unit were

offset in accordance with the New Source Review rules in effect at that time, the emission

unit's pre-project potential to emit shall be as calculated pursuant to Subsection (d)(1)(i)(A)

and (B).

(4) The provisions of paragraph (3) above shall not apply to a modified emission

unit which constitutes a federal major modification for an air contaminant, or its precursors,

for which the San Diego Air Basin is designated as nonattainment of a national ambient air

quality standard. In such case, the pre-project potential to emit of the modified emission

unit shall equal the unit’s actual emissions.

MRL:jlm

10/07/15

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San Diego County Air Pollution Control District Rule 20.1

Regulation II/Post-Workshop Draft – 10/07/15 -i-

RULE 20.1

NEW SOURCE REVIEW - GENERAL PROVISIONS

(ADOPTED AND EFFECTIVE 5/17/94)

(REV. ADOPTED AND EFFECTIVE 5/15/96)

(REV. ADOPTED AND EFFECTIVE 12/17/97)

(REV. ADOPTED 11/4/98; EFFECTIVE 12/17/98)

(REV. ADOPTED (date of adoption); EFFECTIVE (date of EPA approval into SIP)

Table of Contents

SECTION TITLE PAGE NO.

(a) APPLICABILITY ................................................................................................................. 1

(b) EXEMPTIONS ..................................................................................................................... 1

(c) DEFINITIONS ...................................................................................................................... 2

Table 20.1-1: Air Quality Increments (Class I Areas) ...................................................... 5

Table 20.1-2: Air Quality Increments (Class II Areas) .................................................... 5

Table 20.1-3: Class I Areas .............................................................................................. 9

Table 20.1-4: BACT Cost Modifier ............................................................................... 11

Table 20.1-5a: Federal Major Modification ..................................................................... 15

Table 20.1-5b: Federal Major Stationary Source ............................................................. 18

Table 20.1-6a: Major Modification .................................................................................. 20

Table 20.1-6b: Major Stationary SourceFederal Serious Ozone Non-attainment Area....21

Table 20.1-7: California and National Ambient Air Quality StandardsRESERVED ........ 23

Table 20.1-8: Non-Criteria Pollutant Emissions Significance Levels ............................ 26

Table 20.1-9: Precursor Air Contaminants ..................................................................... 28

Table 20.1-10: PSD Modification .................................................................................... 29

Table 20.1-11: PSD Stationary Sources and Trigger Levels ............................................ 29

Table 20.1-12: Stationary Sources Impacting Any Class I Area ...................................... 31

Table 20.1-13: Stationary Sources Impacting Any Class II Area .................................... 32

(d) EMISSION CALCULATIONS .......................................................................................... 34

(1) Potential to Emit ......................................................................................................... 34

(i) Calculation of Pre-Project and Post-Project Potential to Emit ......................... 34

(ii) Calculation of Aggregate Potential to Emit - Stationary Source ...................... 36

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Post-Workshop Draft – 10/07/15

Table of Contents

SECTION TITLE PAGE NO.

(2) Actual Emissions ........................................................................................................ 38

(i) Time Period forCalculation of Actual Emissions for Purposes of Determining

Potential to Emit ................................................................................................ 38

(ii) Time Periods Less Than Six Months - Potential to EmitCalculation of Actual

Emissions for Purposes of Quantifying Emission Reductions .......................... 39

(iii) Adjustments for Violations ............................................................................... 39

(iv) Adjustments for Currently Applicable Federally Enforceable Requirements .. 40

(3) Emission Increase....................................................................................................... 40

(i) New Emission Units .......................................................................................... 40

(ii) Modified Emission Units .................................................................................. 40

(iii) Relocated Emission Units ................................................................................ 41

(iv) Replacement Emission Units ............................................................................ 41

(v) Portable Emission Units .................................................................................... 41

(vi) Determining Emission Increases for AQIA Trigger LevelsProjects................. 41

(vii) Determining Emissions Increases for Projects Federal Major Modifications

and Federal Major Stationary Sources .............................................................. 41

(4) Emission Reduction - Potential to Emit, & Actual Emission Reduction, Emission

Reduction Credits ....................................................................................................... 42

(i) Reduction in the Potential to Emit .................................................................... 42

(ii) Actual Emission Reduction ............................................................................... 43

(iii) Adjustments for Determining Actual Emission Reductions ............................. 44

(iv) Emission Reduction Credits .............................................................................. 45

(5) Emission Offsets ........................................................................................................ 46

(e) OTHER PROVISIONS ....................................................................................................... 48

(1) Continuity of Existing Permits ................................................................................... 48

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RULE 20.1. NEW SOURCE REVIEW - GENERAL PROVISIONS

(Adopted & Effective 5/17/94; Rev. Adopted & Effective 5/15/96;

Rev. Adopted & Effective 12/17/97)

(Rev. Adopted 11/4/98; Effective 12/17/98)

(Rev. Adopted (date of adoption) & Effective (date of adoptionEPA

approval into SIP)

(a) APPLICABILITY

Except as provided in Rule 11, or Section (b) of this Rule, or Subsections (d)(1)(ii)(B) or

(d)(4)(iii)(C) of this rule, this rule applies to any new or modified emission unit, any replacement

emission unit, any relocated emission unit or any portable emission unit for which an Authority to

Construct or Permit to Operate is required pursuant to Rule 10, or for which a Determination of

Compliance is required pursuant to Rule 20.5. This rule does not apply to identical or like-kind

replacement emission units exempt from Authority to Construct and modified Permit to Operate

requirements pursuant to these Rules and Regulations. Except as specified herein, the provisions

and requirements of this rule shall be applied on an pollutantair contaminant-specific basis.

Compliance with this rule does not relieve a person from having to comply with other applicable

requirements in these rRules and rRegulations, or state and federal law.

(b) EXEMPTIONS

Except as provided below, the provisions of Rules 20.1, 20.2, 20.3 and 20.4 shall not apply

to:

(1) Any emission unit for which a permit is required solely due to a change in Rule

11, provided the unit was operated in San Diego County at any time within one year prior to

the date of adoption of the applicable Rule 11 change on which the permit requirements

became applicable to the unit and provided a District permit application for the unit is

submitted within one year after the date upon which permit requirements became applicable

to the unit. An emission unit to which this subsection applies shall be included in the

calculation of a stationary source's aggregate potential to emit, as provided in Subsection

(d)(1)(ii).

(2) The following changes, provided such changes are not contrary to any permit

condition, and the change does not result in an increase in the potential to emit of any air

contaminant not previously emitted:

(i) Repair or routine maintenance of an existing emission unit.

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(ii) A change of ownership.

(iii) An increase in the hours of operation.

(iv) Use of alternate fuel or raw material.

(3) Portable and stationary abrasive blasting equipment for which the California Air

Resources Board (ARB) has established standards pursuant to Sections 41900 and 41905 of

the Health and Safety Code, and which comply with the requirements of 17 CCR Section

92000 et. seq. This exemption shall not apply if the abrasive blasting equipment would be,

by itself, a major stationary source, nor to any equipment used in conjunction with the

abrasive blasting equipment the use of which may cause the issuance of air contaminants.

(4) Oxides of nitrogen (NOx) emission increases from new, modified or

replacement emission units subject to the requirements of Rule 69(d)(6) shall not be subject

to the offset provisions of Subsection (d)(5) of Rule 20.2 or of Subsections (d)(5) and (d)(8)

of Rule 20.3. Only those NOx emission increases in compliance with Rule 69 and

associated with generating capacity which the California Energy Commission or California

Public Utilities Commission or their successor, as applicable, has determined a need for

shall be eligible for this exemption.

(54) Piston engines used at airplane runways at military bases and which engines are

used exclusively for purposes of hoisting cable to assist in the capture of errant aircraft

during landings. This exemption shall not apply to any new, modified, relocated or

replacement piston engine emission unit, or project consisting of one or more such units,

that results in an emissions increase which, by itself, constitutes a new federal major

stationary source or a federal major modification.

(65) Air compressors used exclusively to pressurize nuclear reactor containment

domes, provided the compressors are not operated more than 50 hours over any two-year

period, and that the compressors satisfy the Air Quality Impact Analysis (AQIA) provisions

of Subsections (d)(2) of Rules 20.2 and 20.3, as applicable.

(76) Applications for modified Authority to Construct or modified Permit to Operate

which are for the sole purpose of reducing an emission unit’s potential to emit and which

will not result in a modified emission unit, a modified stationary source or an actual

emission reduction calculated pursuant to Rule 20.1(d)(4)(ii) shall be exempt from the Best

Available Control Technology (BACT), Lowest Achievable Emission Rate (LAER), AQIA

and Emission Offset provisions of Rules 20.1, 20.2, 20.3 and 20.4.

(c) DEFINITIONS

For purposes of Rules 20.1, 20.2, 20.3, 20.4 and 20.5, the following definitions shall apply:.

For terms not defined herein, the definitions in Rule 2 shall apply.

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(1) “Achieved in Practice” means demonstrated in field application to be reliable,

in continuous compliance, and maintaining a stated emissions or emissions reduction level

for a period of at least six months.

(121) "Actual Emissions" means the emissions of an emission unit calculated

pursuant to Subsection (d)(2) of this rule.

(232) "Actual Emission Reductions" means emission reductions which are real,

surplus, enforceable, and quantifiable and may be permanent or temporary in duration.

Actual emission reductions shall be calculated pursuant to Subsection (d)(4) of this rule.

(343) "Aggregate Potential to Emit" means the sum of the post-project potential to

emit of all emission units at the stationary source, calculated pursuant to Section (d) of this

rule.

(454) "Air Contaminant Emission Control Project" means any activity or project

undertaken at an existing emission unit which, as its primary purpose, reduces emissions of

air contaminants from such unit in order to comply with a District, California Air

Resources Board (ARB) or federal Environmental Protection Agency (EPA) emission

control requirement.

(i) Such activities or projects do not include:

(A) the replacement of an existing emission unit with a newer or different

unit;, or the reconstruction of an existing emission unit,; or

(B) a modification or replacement of an existing emission unit to the

extent that such replacement, reconstruction, or modification results in an increase

in capacity of the emissions unit,; or

(C) any air contaminant emission control project for a new or modified

emission unit which project is proposed to meet these New Source Review Rules

20.1, 20.2, 20.3 andor 20.4,; or, Banking Rules 26.0 through 26.10

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(D) any air contaminant emission control project for an existing emission

unit proposed to create an actual emission reduction or emission reduction credit

in order to meet a requirement of these New Source Review Rules 20.1-20.4.

(ii) Air contaminant emission control projects include, but are not limited to,

any of the following:

(iA) The installation of conventional or advanced flue gas desulfurization,

or sorbent injection for emissions of oxides of sulfur;

(iiB) Electrostatic precipitators, baghouses, high efficiency multiclones, or

scrubbers for emissions of particulate matter or other pollutants;

(iiiC) Flue gas recirculation, low-NOx burners, selective non-catalytic

reduction or selective catalytic reduction for emissions of oxides of nitrogen;

(ivD) Regenerative thermal oxidizers, catalytic oxidizers, condensers,

thermal incinerators, flares, absorption equipment or carbon adsorbers for volatile

organic compounds or hazardous air pollutants;

(vE) Activities or projects undertaken to accommodate switching to an

inherently less polluting fuel, including but not limited to, natural gas firing, or

the cofiring of natural gas and other inherently less polluting fuels, for the purpose

of controlling emissions. The air contaminant emission control project shall

include any activity that is necessary to accommodate switching to an inherently

less polluting fuel; and

(viF) Activities or projects undertaken to replace or reduce the use and

emissions of stratospheric ozone depleting compounds subject to regulation by the

federal EPA.

(565) "Air Quality Impact Analysis (AQIA)" means an analysis of the air quality

impacts of the air contaminant emissions from an emission unit, a project, or a stationary

source, as applicable, conducted by means of modeling as defined herein and as approved

by the Air Pollution Control Officer. Methods other than modeling may be used, as the Air

Pollution Control Officer and the federal EPA may approve. An AQIA shall be based on

the emission exhaust system design and discharge characteristics but not on an exhaust

stack height greater than good engineering practice stack height. This provision shall not

be applied to limit actual stack height. An AQIA shall include an analysis of the impacts

on State and National Ambient Air Quality Standards.

(676) "Air Quality Increment" means any of the following maximum allowable

cumulative increases in air contaminant concentration over the minor source baseline

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concentration from all increment consuming and increment expanding sources (see Tables

20.1-1 and 20.1-2).

TABLE 20.1 - 1

Air Quality Increments

(Class I Areas)

Air Contaminant

Nitrogen Dioxide (NO2)

Annual arithmetic mean

Increment

2.5 µg/m3

Sulfur Dioxide (SO2)

Annual arithmetic mean

24-hr. maximum

3-hr. maximum

2.0 µg/m3

5.0 µg/m3

25.0 µg/m3

Particulate Matter (PM10)

PM10 Annual arithmetic mean

PM10 24-hr. maximum

PM 2.5 Annual arithmetic mean

PM2.5 24-hr. maximum

4.0 µg/m3

8.0 µg/m3

1.0 µg/m3

2.0 µg/m3

TABLE 20.1 - 2

Air Quality Increments

(Class II Areas)

Air Contaminant

Nitrogen Dioxide (NO2)

Annual arithmetic mean

Increment

25.0 µg/m3

Sulfur Dioxide (SO2)

Annual arithmetic mean

24-hr. maximum

3-hr. maximum

20.0 µg/m3

91.0 µg/m3

512.0 µg/m3

Particulate Matter (PM10)

PM10 Annual arithmetic mean

PM10 24-hr. maximum

PM 2.5 Annual arithmetic mean

PM2.5 24-hr. maximum

17.0 µg/m3

30.0 µg/m3

4.0 µg/m3

9.0 µg/m3

(787) "Area Fugitive Emissions of PM10" means fugitive emissions of particulate

matter (PM10) which occur as a result of earth moving operations such as drilling, blasting,

quarrying, stockpiling, and front end loader operations, and on-site vehicular travel ofon

haul roads used to move materials to, from or within a stationary source.

(898) "Attainment" means designated as attainment of the National Ambient Air

Quality Standards (NAAQS) pursuant to Section 107(d) of the federal Clean Air Act or of

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the State Ambient Air Quality Standards (SAAQS) pursuant to Section 39608 of the

California Health and Safety Code, as applicable. For the purposes of these Rules 20.1,

20.2, 20.3 and 20.4, attainment of a NAAQS means also designated as attainment or

unclassifiable by EPA in 40 CFR Section 81.305.

(9109) "Baseline Concentration" means the ambient concentration of an air contami-

nant for which there is an air quality increment, which existed in an impact area on the

major and non-major minor source baseline dates. As specified by 40 CFR §52.21(b)(13),

tThe baseline concentration includes the impact of actual emissions from any stationary

source in existence on the baseline date and the impacts from the potential to emit of

Prevention of Significant Deterioration (PSD) stationary sources which commenced

construction but were not in operation by the baseline date. The baseline concentration

excludes impacts of actual emission increases and decreases at any stationary source

occurring after the baseline date and actual emissions from any PSD stationary source

which commenced construction after January 6, 1975. There are two baseline

concentrations for any given impact area, a baseline concentration as of the major source

baseline date and a baseline concentration as of the non-major minor source baseline date.

(101110) "Baseline Date" means either the major source baseline date or non-major

minor source baseline date, as applicable.

(1211) “Begin Actual Construction” means initiation of physical on-site construction

activities on an emission unit which are of a permanent nature. Such activities include, but

are not limited to, installation of building supports and foundations, laying of underground

pipework, and construction of permanent storage structures. With respect to a modified

emission unit resulting from an operational change, begin actual construction means those

on-site activities, other than preparatory activities, which mark the initiation of the change.

(111312) "Best Available Control Technology (BACT)" means and is applied as

follows:

(i) The lowest emitting of any of the following:

(A) the most stringent emission limitation, or the most effective emission

control device or control technique, or combination thereof, which has been

proven in field application proven in field application achieved in practice and

which is cost-effective for such class or category of emission unit, as

determined by the Air Pollution Control Officer, unless the applicant

demonstrates to the satisfaction of the Air Pollution Control Officer that such

limitation, device, or control technique or combination thereof is not

technologically feasible,; or

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(B) any emission control device, emission limitation or control

technique, or combination thereof, which has been demonstrated but not

necessarily proven in field application proven in field application achieved in

practice and which is cost-effective for such class or category of emission unit

as determined by the Air Pollution Control Officer, unless the applicant

demonstrates to the satisfaction of the Air Pollution Control Officer that such

limitation, device, or control technique or combination thereof is not

technologically feasible,; or

(C) any emission control equipment device, emission limitation or

control technique, process modifications, changes in raw material including

alternate fuels, and substitution of equipment or processes with any equipment

or processes, or any combination of these, determined by the Air Pollution

Control Officer on a case-by-case basis to be technologically feasible and cost-

effective, including transfers of technology from another category of source,; or

(D) the most stringent emission limitation, or the most effective emission

control device or control technique, or combination thereof, contained in any

State Implementation Plan (SIP) approved by the federal EPA for such class or

category of emission unit category unless the applicant demonstrates to the

satisfaction of the Air Pollution Control Officer that such limitation or technique

has not been proven in field application proven in field application achieved in

practice, that it is not technologically feasible or that it is not cost-effective for

such class or category of emission unit.

(ii) In determining BACT, the Air Pollution Control Officer may also consider

lower-emitting alternatives to a proposed new emission unit or process.

(iii) For modified emission units, not including any relocated or replacement

emission units, the entire emission unit’s post-project potential to emit shall be

subject to BACT, except as followsthat BACT shall apply to the emissions increase

associated with the modification and not the emission unit’s entire potential to emit if:

The provisions of this Subsection (c)(11)(ii) shall not apply to relocated or

replacement emission units.

(A) BACT applies to the emissions increase associated with the

modification and not the emission unit’s entire potential to emit, if control

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technology, an emission limit or other emission controls meeting the BACT

definition was previously applied to the unit; and if the project's emission

increase is less than the major modification thresholds of Table 20.1-5.

(B) the emissions increase associated with the modification is less than

25 percent of the emission unit’s pre-project potential to emit; and BACT

applies to the emission unit’s entire post-project potential to emit, if the

emission unit was previously subject to BACT but BACT was determined to not

be cost-effective, technologically feasible or proven in field application.

(C) the project's emission increase is less than the major modification

thresholds of Table 20.1-56a. BACT applies to the emissions increase

associated with the emission unit and not the emission unit’s entire potential to

emit if the emissions increase associated with the modification is less than 25

percent of the emission unit’s pre-project potential to emit and if the project's

emission increase is less than the major modification thresholds of Table 20.1-5.

(iiiiv) In no event shall application of BACT result in the emission of any air

contaminant which would exceed the emissions allowed by any District rule or

regulation, or by any applicable standard under 40 CFR Part 60 (New Source

Performance Standards) or 40 CFR Part 61 or Part 63 (National Emission Standards

for Hazardous Pollutants). Whenever feasible, the Air Pollution Control Officer may

stipulate an emission limit as BACT instead of specifying control equipment. In

making a BACT determination, the Air Pollution Control Officer shall take into

account those environmental and energy impacts identified by the applicant.

(ivv) Whenever feasible, the Air Pollution Control Officer may stipulate an

emission limit as BACT instead of specifying control equipment.

(vvi) In making a BACT determination, the Air Pollution Control Officer shall

take into account those environmental and energy impacts identified by the applicant.

(vivii) In the case of a project consisting of multiple new, modified, relocated or

replacement emission units subject to BACT under these Rules 20.1-20.4, BACT shall

be determined for each such emission unit. The Air Pollution Control Officer may

also require BACT be evaluated for combinations of such emission units. The APCO

Air Pollution Control Officer may determine that BACT for the project is the lowest

emitting, technologically feasible combination of emission limitations, control

devices, control techniques, or process modifications applied to individual emission

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units and/or combinations of such emission units. BACT applied to a combination of

emission units shall not result in less stringent BACT for any emission unit in the

combination than BACT determined for that emission unit individually.

(121413) "Class I Area" means any area designated as Class I under Title I, Part C of the

federal Clean Air Act. As of May 17, 1994(date of adoption), the Agua Tibia National

Wilderness Area was the only area so designated within San Diego County. As of May

17, 1994(date of adoption), the following were the only designated Class I areas within

100 km of San Diego County (see Table 20.1-3):

TABLE 20.1 - 3

Class I Areas

Class I Area Approximate Location

Agua Tibia Wilderness Area San Diego County

Cucamonga Wilderness Area 80 km North - San Bernardino County

Joshua Tree Wilderness Area 40 km NE - Riverside County

San Gabriel Wilderness Area 90 km NW - Los Angeles County

San Gorgonio Wilderness Area 70 km North - San Bernardino County

San Jacinto Wilderness Area 30 km North - Riverside County

(131514) "Class II Area" means any area not designated as a Class I area.

(141615) "Commenced Construction" means that the owner or operator of a stationary

source has an Authority to Construct or a Determination of Compliance issued pursuant to

these rules and regulations and either has:

(i) Begun, or caused to begin, a continuous program of actual on-site

construction of the source to be completed within a reasonable time, or

(ii) Entered into binding agreements or contractual obligations, which cannot

be canceled or modified without substantial loss to the owner or operator, to

undertake a program of actual construction of the source to be completed within a

reasonable time.

(151716) "Construction" means any physical change or change in the method of

operation, including fabrication, erection, installation, demolition or modification of an

emission unit, which would result in a change in actual emissions.

(161817) "Contemporaneous Net Emissions Increase" means the sum of emission

increases from new, or modified, relocated or replacement emission units occurring at a

stationary source within a five-year contemporaneous period consisting of the calendar year

in which the subject emission unit(s) is expected to commence operation and the preceding

four calendar years preceding that calendar year, including all other emission units with

complete applications under District review and which are expected to commence operation

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within such calendar years. The sum of emission increases may be reduced by the

following:

(i) Actual emission reductions occurring at the stationary source within the

five-year contemporaneous period and which have not been used to create an emission

reduction credit or to offset an emission increase under these rules, and

(ii) Enforceable reductions in the potential to emit of a new, or modified,

relocated or replacement unit, which unit resulted in an a contemporaneous net

emissions increase within the five-year contemporaneous period at the stationary

source. In no case shall the reduction in the potential to emit exceed the emission

increases from the new or modified such unit that occurred within the five-year

contemporaneous period.

When an emissions increase from a new, or modified, relocated or replacement

emission unit or project has been determined to be subject to, and approved as in

compliance with, the LAER and/or federal emission offset requirements of Rules 20.1 and

20.3 or Rule 20.4, the contemporaneous net emissions increase for the subject air

contaminant or precursor shall thereafter not include any residual the emission increase

from such new or modified emission unit or project.

(1719) "Contiguous Property" means two or more parcels of land with a common

boundary or separated solely by a public or private roadway or other public or private right-

of-way. Non-adjoining parcels of land which are under common ownership or common

control and which are connected by a process line, conveyors or other stationary materials-

handling equipment under the same common ownership or common control and which

serve only those same non-adjoining parcels shall be considered to be contiguous property.

Notwithstanding the foregoing, non-adjoining parcels of land separated by bodies of water

designated "navigable" by the U.S. Coast Guard shall not be considered contiguous

properties.

(182018) "Cost-Effective" means that the annualized cost in dollars per pound of

emissions of an air contaminant(s) reduced does not exceed $6.00 per pound for NOx,

$6.00 per pound for VOC, $3.33 per pound for PM10, and $6.00 per pound for SOx,

multiplied by the applicable BACT Cost Multiplier specified in Table 20.1 – 4 below. For

all other air contaminants subject to BACT requirements by Rules 20.1-20.4, cost-effective

means that the annualized cost in dollars per pound of emissions of an air contaminant

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reduced does not exceed the highest cost per pound of emissions reduced by other control

measures required to meet stationary source emission standards contained in these rules and

regulations, for the specific air contaminant(s) under consideration, multiplied by the

BACT Cost Multiplier indicated specified in Table 20.1 – 4. When determining the

highest cost per pound of emissions reduced by other control measures, the cost of

measures used to comply with the requirements of New Source Review shall be excluded.

TABLE 20.1 - 4

BACT Cost Multiplier

Stationary Source's

Post-Project Aggregate BACT

Potential to Emit Cost Multiplier

Potential < 15 tons/year 1.1

Potential >≥ 15 tons/year 1.5

(192119) "Emergency Equipment" means an emission unit used exclusively to drive an

electrical generator, an air compressor or a pump in emergency situations, except for

operations up to 52 hours per calendar year for non-emergency purposes. Emission units

used for supplying power for distribution to an electrical grid shall not be considered

emergency equipment.

(202220) "Emergency Situation" means an unforeseen electrical power failure from the

serving utility or of on-site electrical transmission equipment such as a transformer, an

unforeseen flood or fire, or a life-threatening situation. In addition, operation of emergency

generators at Federal Aviation Administration licensed airports for the purpose of providing

power in anticipation of a power failure due to severe storm activity shall be considered an

emergency situation. Emergency situations do not include operation for purposes of

supplying power for distribution to an electrical grid, operation for training purposes, or

other foreseeable event.

(212321) "Emission Increase" means an increase in the potential to emit, calculated

pursuant to Subsection (d)(3).

(232422) "Emission Offsets" means actual emission reductions used to mitigate emission

increases, calculated pursuant to and meetingwhich meet the applicable requirements of

Rules 20.1, 20.3 and 20.4 of these Rules and Regulations Subsection (d)(5).

(2523) “Emission Reduction Credit (ERC)” means a credit for an actual emission

reduction which has been approved by the Air Pollution Control Officer upon determining

that such credit and emission reduction meets the applicable requirements of these Rules

and Regulations in effect at the time that such credit is approved.

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(222624) "Emission Unit" means any article, machine, equipment, contrivance, process

or process line, which emit(s) or reduce(s) or may emit or reduce the emission of any air

contaminant.

(242725) "Enforceable" means capable of being enforced by the District, including but

not limited to, through either the SIP or inclusion of legally and practicably enforceable

limits, including limits contained in conditions onof an Authority to Construct, Permit to

Operate, Determination of Compliance or Emission Reduction Credit (ERC) Certificate.

(2528) "Essential Public Services" means any of the following:

(i) Water, wastewater and wastewater-sludge treatment plants which are

publicly owned or are public-private partnerships under public control. This shall not

include facilities treating hazardous materials other than hazardous materials which

may be used in the process or hazardous materials whose presence in the water,

wastewater or wastewater sludge being treated is incidental.

(ii) Municipal solid waste landfills and solid waste recycling facilities which

are publicly owned or are public-private partnerships under public control, not

including trash to energy facilities or facilities processing hazardous waste.

(2926) “Existing” means the configuration of an emission unit, aggregation of emission

units or a stationary source prior to, and without consideration of, the project under review.

(26) "Federally Enforceable" means, for purposes of permitting new or modified

sources, can be enforced by the federal EPA including through either the SIP or terms and

conditions of an Authority to Construct or Permit to Operate as they apply to the following

requirements:

(i) Any standard or other requirement provided for in the SIP, including any

revisions approved or promulgated by the federal EPA through rulemaking under

Title I of the federal Clean Air Act.

(ii) Any term or condition of an Authority to Construct issued pursuant to

these rules and regulations which term or condition is imposed pursuant to 40 CFR

Parts 60 or 61, 40 CFR Part 52.21 or 40 CFR Part 51, Subpart I.

(iii) Any standard or other requirement under Sections 111 or 112 of the

federal Clean Air Act.

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(iv) Any standard or other requirement of the Acid Rain Program under Title

IV of the federal Clean Air Act or the regulations promulgated thereunder.

This does not preclude enforcement by the Air Pollution Control Officer. Authority

to Construct or Permit to Operate terms and conditions imposed pursuant to these rules and

regulations or state law and not for purposes of compliance with paragraphs (i) through (iv)

above shall not be federally enforceable unless specifically requested by the owner or

operator.

For purposes of creating, banking and/or using creditable emission reductions to meet

federal offset requirements, federally enforceable means capable of being enforced by the

federal EPA including through either the SIP, terms and conditions of a Permit to Operate

or an Emission Reduction Credit (ERC) Certificate that are necessary to ensure compliance

with Rules 26.0 et seq., and to ensure the validity of the emission reduction, or through

terms and conditions of an Authority to Construct, Permit to Operate or Determination of

Compliance as they apply to the creation of emission reductions eligible for banking under

Rules 26.0 et seq.

(273027) "Federal Land Manager" means the National Park Service's Western Regional

Director, the U.S. Forest Service's Pacific Southwest Regional Air Program Manager and

the U.S. Fish and Wildlife Service.

(3128) "Federally Enforceable Requirement" means all of the following as they

apply to emission units at a stationary source, including requirements that have been

promulgated or approved by the federal EPA through rulemaking but which have future

effective compliance dates:

(i) Any standard, emission reduction measure or other requirement provided

for in the State Implementation Plan (SIP).

(ii) Any term or condition of an Authority to Construct issued pursuant to

these rules and regulations which term or condition is imposed pursuant to any

federally-mandated new source review (NSR) or prevention of significant

deterioration (PSD) rule or regulation which has been approved or promulgated by

the federal EPA into the SIP.

(iii) Any standard or other requirement under Sections 111 or 112 of the

federal Clean Air Act.

(iv) Any standard or other requirement of the Acid Rain Program under Title

IV of the federal Clean Air Act or the regulations promulgated thereunder.

(v) Any requirements established pursuant to Section 504(b) or Section

114(a)(3) of the federal Clean Air Act (enhanced monitoring and compliance

certifications).

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(vi) Any standard or other requirement governing solid waste combustion

under Section 129 of the federal Clean Air Act.

(vii) Any standard or other requirement for consumer and commercial products

under Section 183(e) of the federal Clean Air Act.

(viii) Any standard or other requirement for tank vessels under Section 183(f)

of the federal Clean Air Act.

(ix) Any standard or other requirement of the program to control air pollution

from outer continental shelf sources, under Section 328 of the federal Clean Air Act.

(x) Any standard or other requirement of the regulations promulgated to

protect stratospheric ozone under Title VI of the federal Clean Air Act unless the

Administrator of the federal EPA has determined that such requirements need not be

contained in a permit to operate.

(xi) Any national ambient air quality standard or air quality increment or

visibility requirement under Part C of Title I of the federal Clean Air Act, but only as

it would apply to temporary sources permitted pursuant to Section 504(e) of the

federal Clean Air Act.

(xii) Requirements capable of being enforced by the federal EPA including

through either the SIP, terms and conditions of a Permit to Operate, an Authority to

Construct, a Determination of Compliance, or an ERC that are for purposes of

creating, approving and/or using creditable actual emission reductions to meet federal

emission offset requirements and that are necessary to ensure the validity of the

emission reductions and compliance with those portions of these Rules and

Regulations approved into the SIP.

This subsection shall not preclude enforcement of federally-enforceable requirements

by the Air Pollution Control Officer.

(3229) "Federal Major Modification" means the same as a major modification as

defined herein except that the modification is occurring at an existing federal major

stationary source and except that the applicable contemporaneous net emission increase rates

in Table 20.1-5 for oxides of nitrogen (NOx) and volatile organic compounds (VOC) shall

each be equal to or greater than 40 tons per year. a physical or operational change at an

existing federal major stationary source which results, or may result, for an air contaminant

for which the stationary source is a federal major stationary source, in both: (1) an emissions

increase, including fugitive emission increases, equal to or greater than any of the significant

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emissions increase rates listed below in Table 20.1-5a; and, (2) a contemporaneous net

emissions increase, including fugitive emission increases, equal to or greater than any of the

significant emissions increase rates listed below in Table 20.1 – 5a.

TABLE 20.1 – 5a

Federal Major Modification

Significant Emissions Increase

Air Contaminant: (Ton/yr)

Fine Particulate Matter (PM2.5) 10

Particulate Matter (PM10) 15

Oxides of Nitrogen (NOx)

>NOx, if the San Diego Air Basin is designated

by EPA in 40 CFR 81.305 as a marginal or

moderate ozone nonattainment area: 40

>NOx, if the San Diego Air Basin is designated

by EPA in 40 CFR 81.305 as a serious or severe

ozone nonattainment area: 25

Volatile Organic Compounds (VOC)

>VOC, if the San Diego Air Basin is designated

by EPA in 40 CFR 81.305 as a marginal or

moderate ozone nonattainment area: 40

>VOC, if the San Diego Air Basin is designated

by EPA in 40 CFR 81.305 as a serious or

severe ozone nonattainment area: 25

Oxides of Sulfur (SOx) 40

Carbon Monoxide (CO) 100

Lead (Pb) 0.6

(3330) "Federal Major Stationary Source" means the same as a major stationary

source as defined herein except that the applicable emission rates in Table 20.1-6 for

oxides of nitrogen (NOx) and volatile organic compounds (VOC) shall each be equal to or

greater than 100 tons per year. any emission unit, project or stationary source which has, or

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will have after issuance of an Authority to Construct or modified Permit to Operate, an

aggregate potential to emit one or more air contaminants in amounts equal to or greater

than any of the emission rates listed below in Table 20.1 – 5b. Fugitive emissions shall not

be included in determining the aggregate potential to emit for purposes of applying this

definition unless the emission unit, project or stationary source, as applicable, belongs to

one of the following source categories:

(i) Coal cleaning plants (with thermal dryers);

(ii) Kraft pulp mills;

(iii) Portland cement plants;

(iv) Primary zinc smelters;

(v) Iron and steel mills;

(vi) Primary aluminum ore reduction plants;

(vii) Primary copper smelters;

(viii) Municipal incinerators capable of charging more than 250 tons of refuse

per day;

(ix) Hydrofluoric, sulfuric or nitric acid plants;

(x) Petroleum refineries;

(xi) Lime plants;

(xii) Phosphate rock processing plants;

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(xiii) Coke oven batteries;

(xiv) Sulfur recovery plants;

(xv) Carbon black plants (furnace process);

(xvi) Primary lead smelters;

(xvii) Fuel conversion plants;

(xviii) Sintering plants;

(xix) Secondary metal production plants;

(xx) Chemical process plants, but not including ethanol production facilities

that produce ethanol by natural fermentation included in included in NAICS codes

325193 or 312140;

(xxi) Fossil-fuel boilers, or combination thereof, totaling more than 250 million

British thermal units per hour heat input;

(xxii) Petroleum storage and transfer units with a total storage capacity

exceeding 300,000 barrels;

(xxiii) Taconite ore processing plants;

(xxiv) Glass fiber processing plants;

(xxv) Charcoal production plants;

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(xxvi) Fossil fuel-fired steam electric plants of more than 250 million British

thermal units per hour heat input;

(xxvii) Any other stationary source category which, as of August 7, 1980, is being

regulated under Sections 111 or 112 of the federal Clean Air Act.

TABLE 20.1 – 5b

Federal Major Stationary Source

Emission Rate

Air Contaminant: (Ton/yr)

Fine Particulate Matter (PM2.5) 100

Particulate Matter (PM10) 100

Oxides of Nitrogen (NOx)

>NOx, if the San Diego Air Basin is designated

by EPA in 40 CFR 81.305 as a marginal or

moderate ozone nonattainment area: 100

>NOx, if the San Diego Air Basin is designated by

EPA in 40 CFR 81.305 as a serious or severe

ozone nonattainment area: 50

Volatile Organic Compounds (VOC)

>VOC, if the San Diego Air Basin is designated

by EPA in 40 CFR 81.305 as a marginal or

moderate ozone nonattainment area: 100

>VOC, if the San Diego Air Basin is designated by

EPA in 40 CFR 81.305 as a serious or severe

ozone nonattainment area: 50

Oxides of Sulfur (SOx) 100

Carbon Monoxide (CO) 100

Lead (Pb) 100

(3431) "Federally-mandated New Source Review (NSR)" means those portions of

these Rules and Regulations applicable to the permitting of new and modified stationary

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sources and which are contained in the San Diego Air Basin portion of the approved State

Implementation Plan.

(283532) "Fugitive Emissions" means those quantifiable emissions which could not

reasonably pass through a stack, chimney, flue, vent or other functionally equivalent

opening.

(3633) "Good Engineering Practice Stack Height" means the same term as defined in

40 CFR §51.100.

(293734) "Impact Area" means the circular area with the emission unit as the center and

having a radius extending to the furthest point where a significant impact is expected to

occur, not to exceed 50 kilometers.

(303835) "Increment Consuming" means emission increases which consume an air

quality increment. Emission increases which consume increment are those not accounted

for in the baseline concentration, including:

(i) Actual emission increases occurring at any major stationary source after

the major source baseline date, and

(ii) Actual emission increases from any non-major stationary source, area

source, or mobile source occurring after the non-majorminor source baseline date.

(313936) "Increment Expanding" means actual emission reductions which increase an

available air quality increment. Actual emission reductions which increase available

increment include:

(i) Actual emission reductions occurring at any major stationary source after

the major source baseline date, and

(ii) Actual emission reductions from any non-major stationary source, area

source, or mobile source occurring after the non-majorminor source baseline date.

(4037) “Legally and Practicably Enforceable Limits” means the provisions of these

Rules and Regulations, and terms or conditions contained in any valid Authority to

Construct, Temporary Permit to Operate, or Permit to Operate issued pursuant to these

Rules and Regulations, that limit the actual emissions of an emission unit or group of

emission units and that are permanent, technically accurate, quantifiable; have associated

recordkeeping, reporting, and monitoring requirements sufficient to determine ongoing

compliance with the emission limitation; are not in violation of any of these Rules or

Regulations, State Law or the State Implementation Plan; and there is a legal obligation to

adhere to the terms and conditions of the emission limitation and associated requirements.

(324138)"Lowest Achievable Emission Rate (LAER)" means and is applied as follows:

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(i) The lowest emitting of any of the following:

(A) the most stringent emission limitation, or most effective emission

control device or control technique, or combination thereof, contained in any

SIP approved by the federal EPA for such emission unit class or category of

emission unit, unless the applicant demonstrates to the satisfaction of the Air

Pollution Control Officer that such emission limitation, device or technique is

not achievable, or

(B) the most stringent emission limitation which is achieved in practice

by such class or category of emission unit, or

(C) Best Available Control Technology (BACT).

(ii) For modified emission units subject to the LAER requirements of these

rules, the entire emission unit’s post-project potential to emit shall be subject to

LAER.

(iii) In no event shall application of LAER result in the emission of any air

contaminant which would exceed the emissions allowed by any District Rule or

Regulation, or by any applicable standard under 40 CFR Part 60 (New Source

Performance Standards) or 40 CFR Parts 61 and 63 (National Emission Standards for

Hazardous Air Pollutants).

(334239) "Major Modification" means a physical or operational change which results, or

may result, in a contemporaneous net emissions increase at an existing major stationary

source which source is major for the pollutant air contaminant for which there is a

contemporaneous net emissions increase, equal to or greater than any of the emission rates

listed in Table 20.1 – 56a.

TABLE 20.1 – 56a

Major Modification

Emission Rate

Air Contaminant: (Ton/yr)

Fine Particulates Matter (PM 2.5) 10

Particulate Matter (PM10) 15

Oxides of Nitrogen (NOx) 25

Volatile Organic Compounds (VOC) 25

Oxides of Sulfur (SOx) 40

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Carbon Monoxide (CO) 100

Lead (Pb) 0.6

(344340) "Major Source Baseline Date" means, for all of San Diego County, January 6,

1975 for sulfur dioxide (SO2) and particulate matter (PM10), and February 8, 1988 for

nitrogen dioxide (NO2), and October 20, 2010 for PM2.5.

(354441) "Major Stationary Source" means any emission unit, project or stationary

source which has, or will have after issuance of an Authority to Construct or modified

Permit to Operate a permit, an aggregate potential to emit one or more air contaminants,

including fugitive emissions, in amounts equal to or greater than any of the emission rates

listed in Table 20.1 – 6b.

TABLE 20.1 – 6b

Major Stationary Source

Federal Serious Ozone Non-attainment Area

Emission Rate

Air Contaminant: (Ton/yr)

Fine Particulates Matter (PM2.5) 100

Particulate Matter (PM10) 100

Oxides of Nitrogen (NOx) 50

Volatile Organic Compounds (VOC) 50

Oxides of Sulfur (SOx) 100

Carbon Monoxide (CO) 100

Lead (Pb) 100

(36) "Military Tactical Support Equipment" means any equipment owned by the

U.S Department of Defense or the National Guard and used in combat, combat support,

combat service support, tactical or relief operations, or training for such operations.

(4542) "Minor Source Baseline Date" means for all of San Diego County, December

8, 1983, for sulfur dioxide (SO2), October 1, 1999. for particulate matter (PM10) and

nitrogen dioxide (NO2), and June 14, 2012 for fine particulates (PM2.5).

(374643) "Modeling" means the use of an applicable ARB or federal EPA-approved air

quality model to estimate ambient concentrations of air contaminants or to evaluate other

air quality related data. Applicable state or federal guidelines, including those contained in

40 CFR Part 51, Appendix W - Guideline on Air Quality Models, shall be followed when

performing modeling to determine air quality impacts relative to the national ambient air

quality standards, a significant impact, or an air quality increment. Where an air quality

model specified in Appendix W is inappropriate, the model may be modified or another

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model substituted. Such a modification or substitution of a model may be made on a case-

by-case basis or, where appropriate, on a generic basis for purposes of these Rules and

Regulations. Written approval of the federal EPA Region 9 Administrator shall be

obtained for any such modification or substitution. The use of a modified or substitute

model shall be identified in the applicable public notice and opportunity for public

comment required in Subsections (d)(4) of Rules 20.2-20.4, unless use on a generic basis

has been previously subject to an equivalent public and government agency notice and

comment period.

(384744) "Modified Emission Unit" means any physical or operational change,

including but not limited to a permit condition change, which results or may result in an

increase in an existing emission unit's potential to emit, including those air contaminants

not previously emitted. The following shall not be considered a modified emission unit,

provided such a change is not contrary to any permit condition, and the change does not

result in an increase in the potential to emit of any air contaminant:

(i) The movement of a portable emission unit from one stationary source to

another.

(ii) Repair or routine maintenance of an existing emission unit.

(iii) An increase in the hours of operation or in the production rate.

(iv) Use of alternate fuel or raw material.

(394845) "Modified Stationary Source" means an existing stationary source where a

new, or modified, relocated or replacement emission unit is, or will be, located or where a

change in the aggregation of emission units occurs, including, but not limited to, the

movement of a relocated emission unit to or from a stationary source or where a

modification of an existing unit occurs. The following shall not be considered a

modification of a stationary source:

(i) The replacement of an emission unit, provided there is no increase in the

unit’s potential to emit or in the potential to emit of any other unit at the stationary

source.

(ii) The movement to or from the stationary source of any portable emission

unit, provided there is no increase in the potential to emit of any other unit at the

stationary source.

(404946) "National Ambient Air Quality Standards (NAAQS)" means maximum

allowable ambient air concentrations for specified air contaminants and monitoring periods

as established by the federal EPA (see Table 20.1 - 7).

TABLE 20.1 – 7 (RESERVED)

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California and National Ambient Air Quality Standards

California Standards National Standards

Pollutant Averaging

Time Concentration Method Primary Secondary Method

Ozone 1 Hour 0.09 ppm - 0.12 ppm

(235 µg/m3)

Same as Primary Ethylene Chemiluminescence

Carbon 8 Hour

9.0 ppm

(10 mg/m3) Non-Dispersive

9 ppm

(10 mg/m3) - Non-Dispersive

Monoxide 1 Hour

20 ppm

(23 mg/m3)

Infrared Spectrascopy

(NDIR)

35 ppm

(40 mg/m3)

Infrared Spectrascopy

(NDIR)

Nitrogen Annual Average -

Gas Phase

0.053 ppm

(100 µg/m3) Same as Gas Phase

Dioxide 1 Hour

0.25 ppm

(470 µg/m3)

Chemiluminescence -

Primary Standards Chemiluminescence

Annual Average -

80 µg/m3

(0.03 ppm) -

Sulfur 24 Hour

0.04 ppm

(105 µg/m3) Ultraviolet

365 µg/m3

(0.14 ppm) - Pararosaniline

Dioxide 3 Hour -

Fluorescence -

1300 µg/m3 (0.5 ppm)

1 Hour

0.25 ppm

(655 µg/m3)

- -

Suspended

Particulate Annual Mean 30 µg/m3 Size Selective

Inlet High 50 µg/m3 - High Volume

Matter (PM10) 24 Hour 50 µg/m3

Volume Sampler 150 µg/m3

Sampling

Sulfates 24 Hour 25 µg/m3 Turbidimetric

Barium Sulfate - - -

Lead 30-Day Average 1.5 µg/m3 Atomic Absorption - -

Atomic Absorption

Calendar

Quarter

- 1.5 µg/m3 Same as Primary

Hydrogen

Sulfide 1 Hour 0.03 ppm

(42 µg/m3)

Cadmium Hydroxide

Stractan - - -

Vinyl Chloride

(Chloroethene) 24 Hour 0.010 ppm

(26 µg/m3)

Tedlar Bag Collection, Gas Chromatography - - -

Visibility

Reducing

Particles

1 Observation

In sufficient amount to produce an extinction

coefficient of 0.23 per kilometer due to particles when relative humidity <70%. Measurement in

accordance with ARB Method V.

- - -

Notes to Table 20.1-7

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1. California standards, other than ozone, carbon monoxide, sulfur dioxide

(1 hour), nitrogen dioxide, and particulate matter (PM10), are values that are not to be equaled or exceeded. The ozone, carbon monoxide, sulfur

dioxide (1 hour), nitrogen dioxide, and particulate matter (PM10)

standards are not to be exceeded. 2. National standards, other than ozone and those based on annual averages

or annual geometric means, are not to be exceeded more than once a

year. The ozone standard is attained when the expected number of days per calendar year with maximum hourly average concentrations above

standard is equal to or less than one.

3. Concentration expressed first in units in which it was promulgated. Equivalent units given in parentheses are based upon a reference

temperature of 25oC and a reference pressure of 760 mm of mercury.

All measurements of air quality are to be corrected to a reference

temperature of 25oC and a reference pressure of 760 mm of mercury

(1,013.2 millibar). Ppm in this table refers to ppm by volume or

micromoles of pollutant per mole of gas. 4. Any equivalent procedure that can be shown to the satisfaction of the Air

Resources Board to give equivalent results at or near the level of the air

quality standard may be used.

5. National Primary Standards: The levels of air quality necessary, with

an adequate margin of safety, to protect the public health. Each state must attain the primary standards within a specified number of years

after that state's implementation plan is approved by the

Environmental Protection Agency (EPA). 6. National Secondary Standards: The levels of air quality necessary to

protect the public welfare from any known or anticipated adverse

effects of a pollutant. Each state must attain the secondary standards within a "reasonable time" after the implementation plan is approved

by the EPA.

7. Reference method as described by the EPA: An "equivalent method" of measurement may be used but must have a "consistent relationship

to the reference method" and must be approved by the EPA.

8. Prevailing visibility is defined as the greatest visibility that is attained or surpassed around at least half of the horizon circle but not

necessarily in continuous sector.

9. The annual PM10 state standard is based on the geometric mean of all reported values taken during the year. The annual PM10 national

standard is based on averaging the quarterly arithmetic means.

(415047) "New Emission Unit" means any of the following:

(i) Any emission unit not constructed or installed in San Diego County as of

December 17, 1997(date of adoption).

(ii) Except as provided in Subsection (b)(1) of this rule, any emission unit

which was constructed, installed or operated at its current location without a valid

Authority to Construct or Permit to Operate from the District, except as provided for

in Subsection (b)(1).

(iii) Any emission unit which was inactive for a one-year period or more and

which did not hold a valid Permit to Operate during that period.

(iv) A new emission unit shall no longer be considered a new emission unit,

and shall be considered an existing emission unit, on and after the earlier of: (a) two

years after the date that such unit first operated; or (b) the date when the Air

Pollution Control Officer has

(A) determined that construction is complete;

(B) determined that any required initial emissions and performance

testing has been completed and the results reported and approved;

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(C) determined that the operation of the unit is in compliance with all

conditions of the Authority to Construct relevant to the construction and

operation of the unit; and,

(E) issued a temporary or final Permit to Operate.

(5148) “New Federal Major Stationary Source” means a new emission unit, new

project or new stationary source which will be a federal major stationary source, or a

modification of an existing stationary source which modification itself constitutes a federal

major stationary source. On and after (effective date of adoptionrevised rule), if an

existing previously permitted stationary source will become a federal major stationary

source solely due to a relaxation of a permit limitation on the capacity of the stationary

source to emit an air contaminant, such as a limit on emissions, hours of operation, process

rates or fuel use, the stationary source shall be considered a new federal major stationary

source and the requirements of these Rules 20.1, 20.2, 20.3 and 20.4 shall apply as if

construction of the stationary source had not yet commenced.

(425249) "New Major Stationary Source" means a new emission unit, new project or

new stationary source which will be a major stationary source, or a modification of an

existing stationary source which modification itself constitutes a major stationary source.

(435350) "New Stationary Source" means a stationary source which, prior to the project

under review, did not contain any other permitted equipment, excluding portable emission

units.

(5451) “Nonattainment” means designated as not in attainment of a National

Ambient Air Quality Standard (NAAQS) pursuant to Section 107(d) of the federal Clean

Air Act or of a State Ambient Air Quality Standard (SAAQS) pursuant to Section 39608

of the California Health and Safety Code, as applicable. For the purposes of these Rules

20.1, 20.2, 20.3 and 20.4, nonattainment of a NAAQS means also designated as

nonattainment by EPA in 40 CFR Section 81.305.

(445552) "Non-Criteria Pollutant Emissions Significance Level" means a

contemporaneous net emissions increase occurring at any new or modified PSD stationary

source, equal to or greater than the amounts listed in Table 20.1 - 8.

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TABLE 20.1 - 8

Non-Criteria Pollutant Emissions Significance Levels

Emission Rate

Air contaminant: (Ton/yr)

Asbestos 0.007

Beryllium 0.0004

Fluorides 3

Hydrogen Sulfide (H2S) 10

Mercury 0.1

Reduced Sulfur Compounds 10

Sulfuric Acid Mist 7

Vinyl Chloride 1

Trichlorofluoromethane (CFC-11) 100

Dichlorodifluoromethane (CFC-12) 100

Trichlorotrifluoromethane (CFC-113) 100

Dichlorotetrafluoroethane (CFC-114) 100

Chloropentafluoroethane (CFC-115) 100

Bromochlorodifluoromethane (Halon - 1191) 100

Bromotrifluoromethane (Halon - 1301) 100

Dibromotetrafluoroethane (Halon - 2402) 100

(45) “Non-Major Source Baseline Date” means December 8, 1983, for sulfur

dioxide (SO2). For particulate matter (PM10) and nitrogen dioxide (NO2), the non-major

source baseline date is the date after August 7, 1977, or February 8, 1988, respectively,

when the first Authority to Construct application for any stationary source which will be a

PSD Major Stationary Source for PM10 or NOx or which is a PSD Major Modification for

PM10 or NOx as applicable, is deemed completed. As of May 17, 1994, neither the

particulate matter nor the nitrogen dioxide non-major source baseline date have been

established.

(5653) “Non-Major Stationary Source” means any emission unit, project or stationary

source which has, or will have after issuance of an Authority to Construct or modified

Permit to Operate, an aggregate potential to emit, including fugitive emissions, of each air

contaminant listed in Table 20.1-6b less than the applicable emission rates specified in

Table 20.1-6b.

(465754) "Offset Ratio" means the required proportion of emission offsets to emission

increases, as specified in Rules 20.2, 20.3 or 20.4.

(47) "Particulate Matter or Particulate Matter (PM10)" means particulate matter

with an aerodynamic diameter less than or equal to a nominal 10 microns. For non-fugitive

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emissions, any applicable test method approved by the federal EPA, the state ARB and the

Air Pollution Control Officer shall be used to measure PM10. The Air Pollution Control

Officer may require the use of an applicable test method prior to final approval by EPA and

ARB if the Officer determines that the method is consistent with these rules, or results in an

improved measure of PM10 emissions, and has received written initial concurrence from

ARB and EPA for use of the method.

(485855) "Permanent" means enforceable and which will exist for an unlimited period of

time. For purposes of meeting the emission offset requirements of Rules 20.3 and 20.4,

permanent means also federally enforceable.

(5956) "Permit Limitation on Potential to Emit" means an enforceable permit

condition that restricts, or will restrict, the maximum potential emissions from an emission

unit or aggregation of emission units and that does not violate any District, state or federal

law, rule, regulation, order, or permit condition.

(496057) "Portable Emission Unit" means an emission unit that is subject to the permit

requirements of Rule 10 of these Rules and Regulations, and is designed to be and capable

of being carried or moved from one location to another. Indicia of portability include, but

are not limited to, wheels, skids, carrying handles, dolly, trailer or platform. For the

purposes of this regulation, dredge engines on a boat or barge are considered portable. An

emission unit is not portable if any of the following apply:

(i) The unit, or its replacement, is attached to a foundation or, if not so

attached, will reside at the same location for more than 12 consecutive months. Any

portable emission unit such as a backup or standby unit that replaces a portable

emission unit at a location and is intended to perform the same function as the unit

being replaced will be included in calculating the consecutive time period. In that

case, the cumulative time of all units, including the time between the removal of the

original unit(s) and installation of the replacement unit(s), will be counted toward the

consecutive time period; or

(ii) The emission unit remains or will reside at a location for less than 12

consecutive months if the unit is located at a seasonal source and operates during the

full annual operating period of the seasonal source. A seasonal source is a stationary

source that remains in a single location on a permanent basis (i.e., at least two years)

and operates at that single location at least three months each year; or

(iii) The emission unit is moved from one location to another in an attempt to

circumvent the portable emission unit residence time requirements.

Days when portable emission units are stored in a designated holding or storage area

shall not be counted towards the above time limits, provided the emission unit was not

operated on that calendar day except for maintenance and was in the designated holding or

storage area the entire calendar day.

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The Air Pollution Control Officer may determine, on a case-by-case basis, that

Eemission units which exceed the above time limits will be considered as relocated

equipment and will be subject to the applicable requirements for relocated emission units

contained in Rules 20.1, 20.2, and 20.3.

(506158) "Post-Project Potential to Emit" means an emission unit's potential to emit

after issuance of an Authority to Construct for the proposed project, calculated pursuant

to Section (d).

(516259) "Potential to Emit" means the maximum quantity of air contaminant emissions,

including fugitive emissions, that an emission unit is capable of emitting or permitted to

emit, calculated pursuant to Section (d).

(526360) "Precursor Air Contaminants" means any air contaminant which forms or

contributes to the formation of a secondary air contaminant for which an ambient air

quality standard exists. For purposes of this rule, the precursor relationships are listed in

Table 20.1 - 9.

TABLE 20.1 - 9

Precursor Air Contaminants

Precursor Air Contaminant Secondary Air Contaminant

NO2

NOx PM10 PM2.5

Ozone

VOC PM10

Ozone

SO2

SOx PM10

PM2.5

(536461) "Pre-Project Actual Emissions" means an emission unit's actual emissions

prior to issuance of an Authority to Construct for the proposed project, calculated pursuant

to Section (d).

(546562) "Pre-Project Potential to Emit" means an emission unit's potential to emit

prior to issuance of an Authority to Construct for a proposed project, calculated pursuant

to Section (d).

(556663) "Project" means an emission unit or aggregation of emission units for which an

application or combination of applications for one or more Authorityies to Construct or

modified Permits to Operate is under District review.

(56) "Proven in Field Application" means demonstrated in field application to be

reliable, in continuous compliance and maintaining a stated emission level for a period of at

least one year, as determined by the Air Pollution Control Officer.

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(64) "Proven in Field Application" means demonstrated in field application to be

reliable, in continuous compliance and maintaining a stated emission level for a period of at

least one year, as determined by the Air Pollution Control Officer.

(576765) "PSD Modification" means a contemporaneous net emissions increase

occurring at a modified PSD stationary source equal to or greater than the amounts listed

in Table 20.1 - 10 or any non-criteria pollutant emissions significance level listed in Table

20.1-8.

TABLE 20.1 - 10

PSD Modification

Emission Rate

Air contaminant: (Ton/yr)

Particulate Matter (PM10) 15

Oxides of Nitrogen (NOx) 40

Volatile Organic Compounds (VOC) 40

Oxides of Sulfur (SOx) 40

Carbon Monoxide (CO) 100

Lead and Lead Compounds (Pb) 0.6

(586866) "PSD Stationary Source or Prevention of Significant Deterioration

Stationary Source" means any stationary source, as specified in Table 20.1 - 11, which

has, or will have after issuance of a permit, an aggregate potential to emit one or more air

contaminants in amounts equal to or greater than any of the emission rates listed in Table

20.1 - 11.

TABLE 20.1 - 11

PSD Stationary Sources and Trigger Levels

For stationary sources consisting of:

1. Fossil fuel fired steam electrical plants of more than 250 MM Btu/hr heat input

2. Fossil fuel boilers or combinations thereof totaling more than 250 MM Btu/hr of heat input

3. Municipal incinerators capable of charging more than 250 tons of refuse per day

4. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels

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5. Charcoal production plants

6. Chemical process plants

7. Coal cleaning plants with thermal dryers

8. Coke oven batteries

9. Fuel conversion plants

10. Furnace process carbon black plants

11. Glass fiber processing plants

12. Hydrofluoric acid plants

13. Iron and steel mill plants

14. Kraft pulp mills

15. Lime plants

16. Nitric acid plants

17. Phosphate rock processing plants

18. Petroleum refineries

19. Primary aluminum ore reduction plants

20. Primary copper smelters

21. Primary lead smelters

22. Primary zinc smelters

23. Portland cement plants

24. Secondary metal production plants

25. Sintering plants

26. Sulfuric acid plants

27. Sulfur recovery plants

28. Taconite ore processing plants

The following emission rates: Air Contaminant (Ton/yr)

Particulate Matter (PM10) 100

Oxides of Nitrogen (NOx) 100

Volatile Organic Compounds (VOC) 100

Oxides of Sulfur (SOx) 100

Carbon Monoxide (CO) 100

For all other stationary sources: Air Contaminant (Ton/yr)

Particulate Matter (PM10) 250

Oxides of Nitrogen (NOx) 250

Volatile Organic Compounds (VOC) 250

Oxides of Sulfur (SOx) 250

Carbon Monoxide (CO) 250

(596967) "Quantifiable" means that a reliable basis to estimate emission reductions in

terms of both their amount and characteristics can be established, as determined by the Air

Pollution Control Officer. Quantification may be based upon emission factors, stack tests,

monitored values, operating rates and averaging times, process or production inputs, mass

balances or other reasonable measurement or estimating practices.

(607068) "Real" means actually occurring and which will not be replaced, displaced or

transferred to another emission unit at the same or other stationary source within San Diego

County, as determined by the Air Pollution Control Officer.

(617169) "Reasonably Available Control Technology" or "RACT" means the lowest

emission limit that a particular source is capable of meeting by the application of control

technology that is reasonably available, as determined by the Air Pollution Control Officer

pursuant to the federal Clean Air Act, considering technological and economic feasibility.

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(627270) "Relocated Emission Unit" means a currently permitted emission unit or

grouping of such units which is to be moved within San Diego County from one stationary

source to another stationary source. The moving of a portable emission unit shall not be

considered a relocated emission unit.

(637371) "Replacement Emission Unit" means an emission unit which supplants another

emission unit where the replacement emission unit serves the same function and purpose as

the emission unit being replaced, as determined by the Air Pollution Control Officer.

Identical and like-kind replacements as specified in Rule 11, and subject to the limitations

contained in Rule 11, shall not be considered subject to the requirements of Rules 20.1,

20.2, 20.3 and 20.4 applicable to a replacement emission unit.

(647472) "Secondary Emissions" means emissions which would occur as a result of the

construction, operation or modification of a PSD stationary source, but which are not

directly emitted from any emission unit at the stationary source. Except as provided below,

secondary emissions exclude emissions which come directly from mobile sources, such as

emissions from the tailpipe of a motor vehicle. Secondary emissions include, but are not

limited to:

(i) Emissions from ships or trains coming to or from the stationary source,

unless such emissions are regulated by Title II of the federal Clean Air Act, and

(ii) Emission increases from any emission unit at a support facility not located

at the stationary source, but which would not otherwise be constructed or increase

emissions, and

(iii) Emissions from any emission unit mounted on a ship, boat, barge, train,

truck or trailer, where the operation of the emission unit is dependent upon, or affects

the process or operation (including duration of operation) of any emission unit located

on the stationary source.

(657573) "Significant Impact" means an increase in ambient air concentration, resulting

from emission increases at a new or modified stationary source, equal to or greater than any

of the levels listed in Tables 20.1 - 12 and 20.1 - 13.

TABLE 20.1 - 12

Stationary Sources Impacting Any Class I Area

Significant Impact

Air Contaminant (24-hour Maximum)

Particulate Matter (PM10) 1.0 µg/m3

Nitrogen Dioxide (NO2) 1.0 µg/m3

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Sulfur Dioxide (SO2) 1.0 µg/m3

Carbon Monoxide (CO) 1.0 µg/m3

TABLE 20.1 - 13

Stationary Sources Impacting Any Class II Area

Air Contaminant Significant Impact

Particulate Matter (PM10)

Annual arithmetic mean 1.0 µg/m3

24-hr. maximum 5.0 µg/m3

Nitrogen Dioxide (NO2)

Annual arithmetic mean 1.0 µg/m3

Sulfur Dioxide (SO2)

Annual arithmetic mean 1.0 µg/m3

24-hr. maximum 5.0 µg/m3

Carbon Monoxide (CO)

8-hr. maximum 500.0 µg/m3

1-hr. maximum 2000.0 µg/m3

(667674) "State Ambient Air Quality Standards (SAAQS)" means the maximum

allowable ambient air concentrations for specified air contaminants and monitoring periods

as established by the California Air Resources Board (ARB) (see Table 20.1 - 7).

(6777) "Stationary Source" means an emission unit or aggregation of emission units

which are located on the same or contiguous properties and which units are under common

ownership or entitlement to use common control. Stationary sources also include those

emission units or aggregation of emission units which are under common ownership or

common control and which are located in the California Coastal Waters.

(687875) "Surplus" means the same as defined in Rule 26.0.any emission reduction

which is surplus of federal requirements, as defined herein, and is also in excess of:

(i) Any stationary source emission reduction measure contained in the San

Diego Regional Air Quality Strategy, California Clean Air Act requirements, or state

law, and any District rule, regulation, or order, including those which carry out such

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emission reduction measures. A variance issued by the Air Pollution Control District

Hearing Board is not an order within the meaning of this subsection;.

(7976) "Surplus of Federal Requirements" means any emission reduction which is in

excess of:

(i) Any standard, emission reduction measure or other requirement contained

in the San Diego portion of the California SIP;

(ii) The most recent version of any standard, emission reduction measure or

other requirement adopted by the Air Pollution Control Board and submitted for EPA

approval into the SIP;

(iii) Any standard or other requirement under Sections 111 or 112 of the federal

Clean Air Act;

(iv) Any standard or other requirement of the Acid Rain Program under Title

IV of the federal Clean Air Act or the regulations promulgated thereunder;

(v) Any stationary source emission reduction measure contained in the San

Diego portion of the SIP, the federal Clean Air Act or federal law, and any District or

state law, rule, regulation, or order which carry out such emission reduction measures.

A variance issued by the Air Pollution Control District Hearing Board is not an order

within the meaning of this subsection;

(vi) Any term or condition of an Authority to Construct issued pursuant to

these rules and regulations which term or condition is imposed pursuant to 40 CFR

Parts 60 or 61, 40 CFR Part 63, 40 CFR Part 52.21 or 40 CFR Part 51, Subpart I; and

(vii) Emission reductions which have already been approved as ERCs or

otherwise committed for air quality purposes, including but not limited to as emission

offsets.

(698077) "Temporary" means enforceable, existing and valid for a specified, limited

period of time. For purposes of meeting the federal emission offset requirements of Rules

20.3 and 20.4, temporary means also federally enforceable.

(70) "Volatile Organic Compound (VOC)" means any volatile compound

containing at least one atom of carbon excluding methane, carbon monoxide, carbon

dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonates, and exempt

compounds. Exempt compound means the same as defined in Rule 2.

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(8178) “Yearly” means twelve consecutive months.

(d) EMISSION CALCULATIONS

The emission calculation provisions and requirements of this Section (d) shall be applied on

an air contaminant-specific basis.

(1) POTENTIAL TO EMIT

The potential to emit of each air contaminant shall be calculated on an hourly, daily

and yearly basis.

(i) Calculation of Pre-Project and Post-Project Potential to Emit

Except as provided in Subsections (d)(1)(i)(A) , (B), and (C)through (F), the pre-

project and post-project potential to emit of each emission unit shall be calculated

based on the maximum design capacity or other operating conditions which reflect the

maximum potential emissions, including fugitive emissions.

(A) Permit Limitations on Pre-Project and Post-Project Potential to

Emit Shall be Used

Except as provided in Subsections (d)(1)(i)(C) and (D), Iif specific

limiting conditions contained in an Authority to Construct or Permit to

Operate enforceable permit limitations on potential to emit restrict or will

restrict maximum potential emissions of an emission unit on an hourly,

daily or annual basis to a lower level, these limitations shall be used to

calculate the pre-project or post-project potential to emit, as applicable, on

an hourly, daily and annual basis.

(B) Potential to Emit Shall Not Exceed Maximum Potential

Calculation of Pre-Project Potential to Emit for Modified Emission Units

Where No Permit Limitations Exist

If there are no specific enforceable conditions limiting an emission

unit’s pre-project potential to emit are not contained in an Authority to

Construct or Permit to Operate, the pre-project potential to emit shall be

limited to the emission unit's highest actual emissions calculated pursuant

to Subsection (d)(2), unless limitedor to a lower level of emissions, as the

applicant and the Air Pollution Control Officer may agree, provided such

by a permit limitation on potential to emit for the emission unitis

enforceable through permit conditions and does not violate any District,

state or federal law, rule, regulation, order or permit condition. The Air

Pollution Control Officer may base the pre-project potential to emit on the

highest level of emissions occurring during a one-year period within the

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five-year period preceding the receipt date of the application, provided that

the emission level was not in excess of any District, state or federal law,

rule, regulation, order or permit condition. If the potential to emit is being

determined for purposes of calculating an actual emission reduction, the

provisions of Subsection (d)(2) shall apply.

(C) Calculation of Pre-Project Potential to Emit for Modified

Emission Units Located at Major Stationary Sources

If a new or modified emission unit is or will be located at an existing

major stationary source, or if a modified emission unit will itself be a

major stationary source, the pre-project potential to emit of the emission

unit shall be calculated as follows. For purposes of determining the post-

project aggregate potential to emit pursuant to Subsection (d)(1)(ii), these

calculation procedures shall not apply to emission units not being modified

and instead the procedures of Subsections (d)(1)(i)(A) and (B) shall apply.

(1) If anthe modified emission unit’s pre-project actual

emissions are less than 80 percent of the emission unit’s potential to

emit calculated pursuant to Subsections (d)(1)(i)(A) and (B), then the

emission unit’s pre-project potential to emit shall be the same as the

unit’s actual emissions.

(2) If anthe modified emission unit’s pre-project actual

emissions are equal to or greater than 80 percent of the emission

unit’s potential to emit calculated pursuant to Subsection (d)(1)(i)(A)

and (B), then the emission unit’s pre-project potential to emit shall be

as calculated pursuant to Subsection (d)(1)(i)(A) and (B).

(3) Notwithstanding paragraphs (1) and (2) above, if an

Authority to Construct has previously been issued for an emission

unit pursuant to New Source Review rules for the District, and the

previous emission increases that resulted from that emission unit

were offset in accordance with the New Source Review rules in

effect at that time, the emission unit's pre-project potential to emit

shall be as calculated pursuant to Subsection (d)(1)(i)(A) and (B).

(4) The provisions of paragraph (3) above shall not apply to a

modified emission unit which constitutes a federal major

modification for an air contaminant, or its precursors, for which the

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San Diego Air Basin is designated as nonattainment of a national

ambient air quality standard. In such case, the pre-project potential

to emit of the modified emission unit shall equal the unit’s actual

emissions.

If an Authority to Construct has previously been issued for an

emission unit pursuant to New Source Review rules approved by EPA into

the SIP for the District, and the previous emission increases that resulted

from that emission unit were offset in accordance with the approved New

Source Review rules in effect at that time, the emission unit's pre-project

potential to emit shall be as calculated pursuant to Subsection (d)(1)(i)(A)

and (B).

(D) Calculation of Pre-Project Potential to Emit for New Emission

Units

Notwithstanding any other provision of this rule, the pre-project

potential to emit for a new emission unit shall be zero.

(E) Calculation of Post-Project and Pre-Project Potential to Emit for

Projects

The post-project and pre-project potential to emit for a project shall

be calculated as the sum of all the post-project or pre-project potentials to

emit, as applicable, for the emission units aggregated in the project unless

limited to a lower level of emissions, as the applicant and the Air Pollution

Control Officer may agree, by a permit limitation on potential to emit for

the project. The aggregate pre-project and post-project potentials to emit

for a project shall not affect the applicability of BACT requirements in

Rules 20.2, 20.3 and 20.4 to individual emission units that are a part of the

project.

(ii) Calculation of Aggregate Potential to Emit - Stationary Source

Except as provided for below in Subsections (d)(1)(ii)(A), (B), and (C)

through (E), the aggregate potential to emit of a stationary source shall be

calculated as the sum of the post-project potential to emit of all emission units

permitted for the stationary source, including emission units under District

review for permit and those to which Subsection (b)(1) applies.

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(A) Permit Limitations on Post-Project Potential to Emit Shall be

Used

If specific, enforceable limiting conditions restrict, or will restrict,

emissions of a stationary source, or an aggregation of emission units at a

stationary source, to a lower level on an hourly, daily or annual basis, these

limitations on post-project potential to emit shall be used in calculating the

aggregate potential to emit of the stationary source.

(AB) Permit-Exempt Equipment

The potential to emit of emission units exempt from permit

requirements by Rule 11, and of emission units that are registered under

District Rules 12 or 12.1 or an ARB registration program under these

Rules and Regulations or state law, shall not be included in the aggregate

potential to emit of a stationary source except that emissions of any federal

criteria air contaminant or precursor from such an emission units shall be

included if the actual emissions of any such air contaminant or precursor

from the unit, without consideration of any add-on emission control

devices, equals or exceeds 5 pounds per day or 25 pounds per week would

be determining as to whether the stationary source is a federal major

stationary source.

The applicant and the Air Pollution Control Officer may agree to

place all permit-exempt and registered emission units which would be

classified under the same class or category of source under permit for

purposes of creating emission reduction credits (ERCs). In such case, the

potential to emit of such emission units shall be included in the stationary

source's aggregate potential to emit.

(BC) Emergency Equipment

The potential to emit from the operation of emergency equipment

during emergency situations shall not be included in the calculation of a

stationary source's aggregate potential to emit. The potential to emit from

operation of emergency equipment during non-emergency situations shall

only be included in the calculation of a stationary source's aggregate

potential to emit if the actual emissions of any federal criteria air

contaminant or precursor from the unit, without consideration of any add-

on emission control devices, equals or exceeds 5 pounds per day or 25

pounds per week.

(CD) Portable Emission Units

The potential to emit of portable emission units which are considered

under the same major industrial grouping, as identified by the first two

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digits of the applicable code in The Standard Industrial Classification

Manual, as the stationary source where such units are or will be operated,

or which are used as part of or to supplement a primary process at the

stationary source where the operation of one is dependent upon or affects

the operation of the other, shall be included in such stationary source’s

aggregate potential to emit. All other Pportable emission units shall be

excluded from the calculation of a stationary source's aggregate potential

to emit.

(DE) Military Tactical Support Equipment Engines

Emissions from portable engines, including gas turbines, used

exclusively in conjunction with portable military tactical support

equipment shall be excluded from the calculation of a stationary source's

aggregate potential to emit.

(2) ACTUAL EMISSIONS

Actual emissions are used: to determine pre-project potential to emit where specified in

Subsection (d)(1) of this rule; and, in procedures to quantify emission reductions as specified

in Subsection (d)(4)(ii) of this rule. Actual emissions are calculated based on the actual

operating history of the emission unit and shall be calculated in accordance with Subsections

(d)(2)(i), (ii), (iii) and (iv) below, as applicable.

(i) Time Period For Calculation of Actual Emissions for Purposes of

Determining Pre-Project Potential to Emit

(A) Actual emissions of an existing emission unit shall be calculated on

an operating hour, day and year basis averaged over the most representative two

consecutive years within the five years preceding the receipt date of an

application, as determined by the Air Pollution Control Officer.

(B) For emission units which have not been operated for a consecutive

two-year period which is representative of actual operations within the five

years preceding the receipt date of the application, the calculation of actual

emissions shall be based on the average of any two one-year operating periods

determined by the Air Pollution Control Officer to be representative within that

five-year period. If a representative two-year operating time period does not

exist, the calculation of actual emissions shall be based on the average of the

total operational time period within that five-year period.

Actual emissions of an existing emission unit shall be calculated in accordance

with Subsections (d)(2)(i)(A) or (B) below on an operating hour, day and year basis

for purposes of determining an emission unit’s pre-project potential to emit.

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(A) The emission unit’s pre-project actual hourly, daily and yearly

emissions shall be based on the highest level of hourly, daily and yearly

emissions, respectively, occurring during a twenty-four consecutive month

period representative of normal operations within the five-year period preceding

the receipt date of the application.

(B) The pre-project actual emissions for emission units operated for a

period less than twenty-four consecutive months shall be based on the longest

operating time period determined by the Air Pollution Control Officer to be

most representative of actual operations.

(ii) Time Periods Less Than Six Months - Potential to Emit

For determining potential to emit, actual emissions for emission units operated

for a period less than six months shall be based on the longest operating time period

determined by the Air Pollution Control Officer to be most representative of actual

operations.

(ii) Calculation of Actual Emissions for Purposes of Quantifying Emission

Reductions

(A) Actual emissions of an existing emission unit shall be calculated on

an operating hour, day and year basis averaged over the most representative

twenty-four consecutive months within the five years preceding the receipt date

of an application, as determined by the Air Pollution Control Officer.

(B) For emission units which have not been operated for a twenty-four

consecutive month period which is representative of actual operations within the

five years preceding the receipt date of the application, the calculation of actual

emissions shall be based on the average of any two twelve consecutive month

operating periods determined by the Air Pollution Control Officer to be

representative within that five-year period. If two representative twelve

consecutive month operating time periods do not exist, the calculation of actual

emissions shall be based on the average of the total operational time period

within that five-year period.

(iii) Adjustments for Violations

If an emission unit was operated in violation of any District, state or federal law,

rule, regulation, order or permit condition during the period used to determine actual

emissions, the actual emissions calculated pursuant to this Subsection (d)(2) shall be

adjusted to reflect the level of emissions which would have occurred if the emission unit

had not been in violation.

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(iv) Adjustments for Currently Applicable Federally Enforceable

Requirements

For an emission unit being modified, replaced or relocated, and which will be

located at a federal major stationary source, the actual emissions calculated on an

operating year (yearly) basis pursuant to this Subsection (d)(2) shall be further adjusted;

to reflect the level of emissions which would have occurred had the emission unit been

required to comply with all federally enforceable requirements applicable to the emission

unit at the time that a complete application to modify, replace or relocate the emission

unit is submitted. This subsection (d)(2)(iv) shall only apply to air contaminants, and

their precursors, for which the San Diego Air Basin is designated as nonattainment of a

national ambient air quality standard. This subsection (d)(2)(iv) shall not apply to any

existing electric utility steam generating unit which is intended to supply more than one-

third of its potential electric output capacity and more than 25 megawatts electrical output

to any utility power distribution system for sale. Any steam supplied to a steam

distribution system for the purpose of providing steam to a steam-electric generator that

would produce electrical energy for sale shall be included in determining the electrical

energy output of the unit.

(3) EMISSION INCREASE

A project’s or emission unit's emission increase shall be calculated as follows:

(i) New Emission Units

Emission increases from a new project or emission unit shall be calculated by

using equal to the post-project potential to emit for the project or emission unit.

(ii) Modified Emission Units

Emission increases from a modified project or emission unit shall be calculated

as the project’s or emission unit's post-project potential to emit minus the project’s or

emission unit's pre-project potential to emit.

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(iii) Relocated Emission Units

Emission increases from a relocated project or emission unit at its new location

shall be equal to calculated as the project’s or emission unit's post-project potential to

emit minus the project’s or emission unit's pre-project potential to emit.

(iv) Replacement Emission Units

Emission increases from a replacement project or emission unit shall be

calculated as the replacement project’s or emission unit's post-project potential to emit

minus the existing project’s or emission unit's pre-project potential to emit.

(v) Portable Emission Units

Emission increases from a portable emission unit shall be calculated as the

emission unit's post-project potential to emit minus the emission unit's pre-project

potential to emit.

(vi) Projects

Emission increases from a project shall be calculated as the project’s post-

project potential to emit minus the project’s pre-project potential to emit.

(vi) Determining Emission Increases for AQIA Trigger Levels

When calculating emission increases for purposes of comparing with the Air

Quality Impact Analysis (AQIA) trigger levels of Rules 20.2 or 20.3, area fugitive

emissions of particulate matter (PM10) shall be excluded from the pre-project

potential to emit and the post-project potential to emit calculations, unless the Air

Pollution Control Officer determines, on a case-by-case basis, that a project’s area

fugitive emissions of PM10 must be evaluated in order to protect public health and

welfare.

(vii) Determining Emissions Increases for Federal Major Modifications

and Federal Major Stationary Sources

When calculating emissions increases for the sole purpose of determining

whether a project at an existing federal major stationary source constitutes a federal

major modification, or whether a modification at an existing stationary source

constitutes a new federal major stationary source, and thereafter applying the

provisions of this Rule 20.1 and Rules 20.2, 20.3, and 20.4 of these Rules and

Regulations specific to federal major modifications and federal major stationary

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sources, an applicant for such project or modification may choose to use the methods

contained in 40 CFR 51.165 (a)(2)(ii)(B) through (F), and references therein, as they

existed on (date of adoption of this amended Rule 20.1). References in 40 CFR

51.165 (a)(2)(ii)(B) through (F) to major modification and to major stationary source

shall be read as referring to federal major modification and federal major stationary

source as defined in Section (c) of this rule. The provisions of this Section (d) for

determining emissions increases, excluding this Subsection (d)(3)(vii), shall apply for

all other purposes of this Rule 20.1 and Rules 20.2, 20.3 and 20.4.

(4) EMISSION REDUCTION - POTENTIAL TO EMIT, & ACTUAL EMISSION

REDUCTION, EMISSION REDUCTION CREDITS

A project’s or emission unit's emission reduction shall be calculated as follows:

(i) Reduction in the Potential to Emit

(A) Modified Emission Units

Reduction in the potential to emit for a modified project or emission unit

shall be calculated as the project’s or emission unit's pre-project potential to emit

minus the project’s or emission unit's post-project potential to emit.

(B) Relocated Emission Units

Reduction in the potential to emit for a relocated project or emission unit

shall be calculated as the project’s or emission unit's pre-project potential to emit

minus the project’s or emission unit's post-project potential to emit.

Notwithstanding the foregoing, the post-project potential to emit of a relocated

emission unit shall be used in determining the aggregate potential to emit of, and

any contemporaneous net emissions increase at, the stationary source to which it

is relocated, and the emission increase of any project which the relocated emission

unit is a part.

(C) Replacement Emission Units

Reduction in the potential to emit for a replacement project or emission

unit shall be calculated as the existing project’s or emission unit's pre-project

potential to emit minus the replacement project’s or emission unit's post-project

potential to emit.

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(D) Portable Emission Units

Reduction in the potential to emit for a portable emission unit shall be

calculated as the emission unit's pre-project potential to emit minus the emission

unit's post-project potential to emit.

(E) Projects

Reduction in the potential to emit for a project shall be calculated as the

project's pre-project potential to emit minus the project's post-project potential to

emit.

(ii) Actual Emission Reduction

Notwithstanding any other provision of this rule, actual emissions calculated

pursuant to Subsection (d)(2)(ii), (iii) and (iv) shall be used for purposes of

determining an actual emission reduction in accordance with this Subsection (d)(4)(ii)

and Subsection (d)(4)(iii). An actual emission reduction must be real, surplus,

enforceable, quantifiable and may be permanent or temporary in duration. A

temporary actual emission reduction shall be identified as temporary and shall include

a specific date beyond which the reductions are no longer valid. Actual emission

reductions shall be calculated as follows:

(A) Shutdowns

Unless an emission unit is replaced, Aactual emission reductions from the

shutdown of an emission unit shall be calculated based on the emission unit's

pre-project actual emissions. Actual emission reductions from the shutdown and

replacement of an emission unit shall be calculated pursuant to Subsection

(d)(4)(ii)(D).

(B) Modified Emission Units

Actual emission reductions from a modified project or emission unit shall

be calculated as the project’s or emission unit's pre-project actual emissions

minus the project’s or emission unit's post-project potential to emit.

(C) Relocated Emission Units

Actual emission reductions from a relocated project or emission unit shall

be calculated as the project’s or emission unit's pre-project actual emissions

minus the project’s or emission unit's post-project potential to emit.

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(D) Replacement Emission Units

Actual emission reductions from a replacement project or emission unit

shall be calculated as the existing project’s or emission unit's pre-project actual

emissions minus the replacement project’s or emission unit's post-project

potential to emit.

(E) Portable Emission Units

Actual emission reductions from a portable emission unit shall be

calculated as the emission unit's pre-project actual emissions minus the emission

unit's post-project potential to emit.

(F) Projects

Actual emission reductions from a project shall be calculated as the sum of

all the pre-project actual emissions from the emission units aggregated in the

project minus the project's post-project potential to emit.

(iii) Adjustments For Determining Actual Emission Reductions

The following adjustments shall be made in determining actual emission

reductions:

(A) Units Permitted and Operated Less Than Two Years

If an emission unit has been permitted and operated for a period less than

two years, the emission unit’s actual emissions (in tons per year) shall be calcu-

lated as the unit’s actual emissions (in tons) that occurred during the actual

operating time period times multiplied by the actual operating time period in

days divided by 1460 days.

(B) Adjustments forRule Violations Permitted Emission Units

If an emission unit was operated in violation of any District, state or

federal law, rule, regulation, order or permit condition during the period used to

determine actual emissions, the actual emissions shall be adjusted to reflect the

level of emissions which would have occurred if the emission unit had not been

in violation.Actual emission reductions from permitted emission units shall

exclude emission reductions which are not surplus at the time the actual

emission reduction is determined.

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(C) Adjustments for Federal Reasonably Available Control Technology

(RACT) Emission Units Exempt from Permit Requirements

Actual emission reductions shall exclude emission reductions which would

have occurred had RACT requirements, determined by the Air Pollution Control

Officer to meet the requirements of the 1990 federal Clean Air Act

Amendments, been applied. This provision shall not apply to actual emission

reductions from an emission unit which is exempt from permit requirements

pursuant to Rule 11. Such actual emission reductions shall be determined in

accordance with Subsections (d)(2)(ii), (d)(2)(iii) and (d)(4)(ii) of this rule, but

shall not be further reduced in accordance with this rule at the time the actual

emission reduction is determined. However, at the time of use the emission

reduction credits (ERCs) or actual emission reductions created from actual

emission reductions from such an exempt emission unit are used to meet an

emission offset requirement of these Rules 20.1 and 20.3 or 20.4, the ERCs or

the actual emission reduction, as applicable, shall be discounted by the emission

reductions which would have occurred had RACT, determined by the Air

Pollution Control Officer to meet the requirements of the federal Clean Air Act,

been applied. shall be further adjusted to exclude emission reductions which are

not surplus at the time the ERC or actual emission reduction is so used. A

condition shall be included in the any Emission Reduction Credit (ERC)

Certificate for such an exempt emission unit requiring such discounting

adjustment to occur at the time of use of the emission reduction credit ERC.

(iv) Emission Reduction Credits (ERCs)

The following procedures shall be followed in evaluating and acting on an

application for emission reduction credits:

(A) An emission reduction credit may be approved by the Air Pollution

Control Officer upon determining that the actual emission reduction that is the

basis of such credit meets the applicable requirements of this Rule 20.1, and of

these Rules and Regulations, in effect at the time that such credit is approved.

(B) The Air Pollution Control Officer’s approval of an emission

reduction credit shall be in writing and shall contain conditions necessary to

ensure the validity of the credit.

(C) Such approval shall be first subject to public notice in a newspaper of

general circulation and a 30-calendar day period for public, agency and

applicant review and comment. A copy of the public notice shall be provided to

the federal EPA, through its Region 9 office, and to the California ARB.

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(D) An applicant for an emission reduction credit may appeal the denial

or conditional approval of a credit to the Air Pollution Control District Hearing

Board within 30 days of receipt of such denial or conditional approval.

(E) The use of an emission reduction credit to meet an emission offset

requirement of these Rules 20.1, 20.3 or 20.4 shall be subject to the applicable

requirements of those rules.

(5) EMISSION OFFSETS (Rev. Adopted 11/4/98; Effective 12/17/98)

Emission offsets are actual emission reductions which are provided to mitigate

emission increases where required by these Rules and Regulations. In order to be

considered an emission offset, actual emission reductions or ERCs must be valid for the life

of the emission increase which they are offsetting. Emission offsets must meet the

applicable criteria specified in this Rules 20.1 and Rules 20.3 and 20.4.

(i) Emission offsets shall consist of:

(A) actual emission reductions calculated in accordance with Subsections

(d)(4)(ii) and (d)(4)(iii) of this rule; or,

(B) Class 'A' ERCs pursuant to meeting the applicable requirements of

Rules 26.020.1 through 26.1020.4 in effect at the time such ERCs were

approved; or,

(C) a mobile source ERCs issued pursuant to Rule 27.1; or, In order to be

considered an emission offset, actual emission reductions or ERCs must be valid

for the life of the emission increase which they are offsetting.

(D) emission reduction credits issued pursuant to a District rule, which

has been approved by the federal EPA for inclusion into the District portion of

the State Implementation Plan and which, containing contains standards for the

creation and approval of such credits.

(ii) In order to qualify as an emission offset, actual emission reductions shall

have been banked evaluated and approved as an emission reduction credit by the Air

Pollution Control Officer pursuant to District Banking the applicable requirements of

Rules 20.1, 20.3 and 20.4 26.0 through 26.10 or Rule 27.1, or an applicable District

emission reduction credit creation and approval rule approved by the federal EPA into

the State Implementation Plan, unless the actual emission reductions are being

proposed to offset emission increases occurring concurrently at the stationary source.

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In such a case, the Air Pollution Control Officer may choose to administratively

forego the issuance of ERCs.

(iii) Emission offsets shall be in effect and enforceable at the time of startup of

the emission unit, project or stationary source requiring the offsets.

(iv) Emission offsets must be federally enforceable at the time of issuance of

an Authority to Construct if the source is a new federal major stationary source or a

federal major modification for the pollutant for which offsets are being provided. If

interpollutant offsets are being provided, the offsets must be federally enforceable if

the pollutant they are offsetting is major.

(v) Actual emission reductions and ERCs used to meet the emission offset

requirements of Rules 20.3 applicable to a new federal major stationary source or a

federal major modification shall be surplus of federal requirements at the time such

emission reductions and ERCs are to be used as offsets. If the actual emission

reductions, which were the basis of any such offsetting emission reductions or ERCs,

resulted from the shutdown or curtailment in production and/or operating hours of an

existing emission unit or existing stationary source, where such shutdown or

curtailment occurred on or before the last day of the baseline year used in the Air

Pollution Control District’s most recent NAAQS attainment plan, such emissions

must have been included in the projected emissions inventory used to develop the

attainment demonstration associated with that plan.

(ivvi) Emission offsets shall be provided on a ton per year basis.

(vii) Emission offsets shall be located in San Diego County, except as provided

pursuant to a District rule, approved by the California ARB and the federal EPA for

inclusion into the District portion of the State Implementation Plan, containing

standards for the creation and approval of emission reduction credits in coastal waters

adjacent to San Diego County.

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(e) OTHER PROVISIONS (Rev. Adopted 11/4/98; Effective 12/17/98)

(1) CONTINUITY OF EXISTING PERMITS

All of the conditions contained in any Authority to Construct or Permit to Operate

issued prior to December 17, 1998(effective date of adoptionrevised rule), shall remain valid

and enforceable for the life of the Authority to Construct or Permit to Operate, unless

specifically modified by the District.

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San Diego County Air Pollution Control District Rule 20.2

Regulation II/Post-Workshop Draft – 10/07/15 -i-

RULE 20.2

NEW SOURCE REVIEW

NON - MAJOR STATIONARY SOURCES

(ADOPTED AND EFFECTIVE 5/17/94)

(REV. ADOPTED AND EFFECTIVE 12/17/97)

(REV. ADOPTED 11/4/98; EFFECTIVE 12/17/98)

(REV. ADOPTED (date of adoption); EFFECTIVE (date of EPA approval into SIP)

Table of Contents

SECTION TITLE PAGE NO.

(a) APPLICABILITY ............................................................................................................... 1

(b) EXEMPTIONS ................................................................................................................... 1

(c) DEFINITIONS .................................................................................................................... 2

(d) STANDARDS .................................................................................................................... 2

(1) Best Available Control Technology (BACT) ............................................................ 2

(i) New or Modified Emission Units .................................................................... 2

(ii) Relocated Emission Units ................................................................................ 2

(iii) Replacement Emission Units ........................................................................... 2

(iv) Emergency Equipment Emission Units ............................................................ 3

(v) Projects with Multiple Emission Units ............................................................ 3

(2) Air Quality Impact Analysis (AQIA) ........................................................................ 3

(i) AQIA for New, or Modified, Replacement or Relocated Emission Units

and Projects ...................................................................................................... 4

Table 20.2 - 1: AQIA Trigger Levels .............................................................. 5

(ii) AQIA for ReplacementPM2.5 and PM10 Emission UnitsIncreases ................... 5

(iii) AQIA for Relocated Emission UnitsProjects ................................................... 6

(iv) AQIA Not Required for NOx or VOC Impacts on Ozone ............................... 7

(v) AQIA Requirements for PM10 Impacts May be Waived.................................. 7

(vi) AQIA May be Required ................................................................................... 8

(3) Prevention of Significant Deterioration (PSD)Significant Impact in Class I Areas . 9

(i) Federal Land Manager and Federal EPA Notification ..................................... 9

(ii) ARB, SCAQMD and Imperial County APCD Notification............................. 9

(4) Public Notice and Comment ..................................................................................... 9

(i) Public Comment Period ................................................................................. 10

(ii) Applicant Response ........................................................................................ 10

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Table of Contents

SECTION TITLE PAGE NO.

(iii) Publication of Notice...................................................................................... 10

(iv) Information to be Made Available for Public Inspection ............................... 11

(5) RESERVED ............................................................................................................... 11

(6) RESERVED ............................................................................................................... 11

NOTE: The following listed sections and subsections will not be submitted to the federal

Environmental Protection Agency (EPA) for inclusion in the San Diego State

Implementation Plan (SIP). As such, the following listed sections and subsections

are not enforceable by EPA, but remain enforceable by the San Diego County Air

Pollution Control District.:

Section (b); Subsection (d)(1), (d)(2)(v), (d)(5) and (d)(6); Subsections (d)(2)(i)(B),

(d)(2)(v) and (d)(2)(vi)(B); and Subsection (d)(3).

Subsections (d)(2)(i), (d)(2)(ii), (d)(2)(iii), (d)(2)(iv) and (d)(2)(vi) will be submitted to EPA

for inclusion in the SIP only with respect to national ambient air quality standards.

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RULE 20.2. NEW SOURCE REVIEW - NON-MAJOR STATIONARY

SOURCES (Adopted & Effective: 5/17/94; Rev. Adopted & Effective

12/17/97; Rev. Adopted 11/4/98; & Effective 12/17/98;

Rev. Adopted (date of adoption); & Effective (date of adoption EPA

approval into SIP)

(a) APPLICABILITY

This rule applies to any new or modified stationary source, to any new or modified

emission unit, to any replacement emission unit, and to any relocated emission unit being moved

fromto a stationary source provided that, after completion of the project, the stationary source is

not a major stationary source. This rule does not apply to identical or like-kind replacement

emission units exempt from Authority to Construct and modified Permit to Operate

requirements pursuant to these Rules and Regulations. This rule does not apply to any portable

emission unit. Compliance with this rule does not relieve a person from having to comply with

other applicable requirements in these rules and regulations, or state and federal law.

(b) EXEMPTIONS (Rev. Adopted 11/4/98; Effective 12/17/98)

The exemptions contained in Rule 20.1, Section (b) apply to this rule. In addition, for

purposes of this rule, the following exemptions shall apply.

(1) An existing permitted Eemission units which areis to be relocated from one

stationary source within San Diego County to another stationary source shall be exempt

from the provisionsBACT requirements of Subsection (d)(1)(ii), provided that:

(i) The emission unit is not being modified,

(ii) There is no increase in the emission unit’s potential to emit,

(iii) The unit is not located for more than 180 days at the stationary source

where it is moved to, and

(iv) The emission unit is not located at more than two stationary sources over

any 365-day period.

(2) An existing permitted Eemission units and which are intendedis to be

permanently relocated from one stationary source within San Diego County to another

stationary source shall be exempt from the provisionsBACT requirements of Subsection

(d)(1)(ii), provided that:

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(i) There is no increase in the emission unit’s potential to emit,

(ii) The relocation occurs within 10 miles of the previous stationary source,

(iii) The relocated emission unit commences operating at the stationary

source it was relocated to within one year of the emission unit ceasing operations at

its previous stationary source.

(c) DEFINITIONS

The definitions contained in Rule 20.1, Section (c) apply to this rule.

(d) STANDARDS (Rev. Adopted 11/4/98; Effective 12/17/98)

(1) BEST AVAILABLE CONTROL TECHNOLOGY (BACT)

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any emission unit and project subject to this rule unless the

applicant demonstrates that the following requirements will be satisfied:

(i) New or Modified Emission Units

Any new or modified emission unit which has any increase in its potential to

emit particulate matter (PM10), oxides of nitrogen (NOx), volatile organic

compounds (VOC) or oxides of sulfur (SOx) and which unit has a post-project

potential to emit of 10 pounds per day or more of PM10, NOx, VOC, or SOx shall

be equipped with Best Available Control Technology (BACT) for each such air

contaminant.

(ii) Relocated Emission Units

Except as provided for in Subsections (b)(1) and (b)(2), any relocated emission

unit with a post-project potential to emit of 10 pounds per day or more of PM10,

NOx, VOC or SOx shall be equipped with BACT for each such air contaminant.

(iii) Replacement Emission Units

Any replacement emission unit with a post-project potential to emit of 10

pounds per day or more of PM10, NOx, VOC or SOx shall be equipped with BACT

for each such air contaminant. This provision shall not apply to identical or like-

kind replacements exempt from Authority to Construct and modified Permit to

Operate requirements pursuant to Rule 11.

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(iv) Emergency Equipment Emission Units

Any new, or modified emergency equipment emission unit which has any

increase in its potential to emit PM10, NOx, VOC or SOx and which unit has a post-

project potential to emit of 10 pounds per day or more of PM10, NOx, VOC or SOx

shall be equipped with BACT for each such air contaminant. For any emergency

equipment emission unit subject to the BACT requirements of Subsections (d)(1)(i),

(ii) or (iii) of this rule, BACT shall apply based on the unit’s non-emergency

operation emissions and excluding the unit’s emissions while operating during

emergency situations.

(v) Projects with Multiple Emission Units

Where a project at a stationary source consists of multiple new, modified,

relocated or replacement emission units required by this Subsection (d)(1) to be

equipped with BACT, BACT shall be evaluated for each such emission unit pursuant

to (d)(1)(i) through (iv),. The Air Pollution Control Officer may require that BACT

be also and evaluated for combinations of such emission units. Where

technologically feasible, lowest emitting and cost-effective, the Air Pollution Control

Officer may require that BACT be applied to a combination of such emission units.

In such case, BACT applied to such combinations shall not result in greater

emissions for the project nor for each emission unit that is part of the project than

were BACT applied to each emission unit.

(2) AIR QUALITY IMPACT ANALYSIS (AQIA)

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any emission unit and project subject to this rule unless the

following requirements are satisfied. Area fugitive emissions of PM10 shall not be

included in the demonstrations required below unless the Air Pollution Control Officer

determines, on a case-by-case basis, that a project’s area fugitive emissions of PM10 must

be evaluated in order to protect public health and welfare.

The demonstrations required by this Subsection (d)(2) shall be based on the emission

unit or project emission exhaust system design and discharge characteristics but not to an

extent greater than good engineering practice stack height. This provision shall not be

applied to limit actual stack height.

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(i) AQIA for New, or Modified, Replacement or Relocated Emission

Units and Projects

(A) For each new, modified, replacement or relocated emission unit

and project which results in an emissions increase equal to or greater than any

of the amounts listed in Table 20.2 – 1 below, the applicant shall demonstrate

to the satisfaction of the Air Pollution Control Officer through an AQIA, as

defined in Rule 20.1, that the project such emissions increase will not:

(A1) cause a violation of a state or national ambient air quality

standard anywhere that does not already exceed such standard, nor

(B2) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded, nor

(C) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(v), nor

(D3) prevent or interfere with the attainment or maintenance of

any state or national ambient air quality standard.

(B) For each new, modified, replacement or relocated emission unit

and project which results in an emissions increase equal to or greater than any

of the amounts listed in Table 20.2 – 1 below, the applicant shall demonstrate

to the satisfaction of the Air Pollution Control Officer through an AQIA that

such emissions increase will not:

(1) cause a violation of a state ambient air quality standard

anywhere that does not already exceed such standard, nor

(2) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(v), nor

(3) prevent or interfere with the attainment or maintenance of a

state ambient air quality standard.

If a PM10 AQIA is required, the AQIA shall include both directly emitted

PM10 and PM10 which would be formed by precursor air contaminants prior to

discharge to the atmosphere.

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TABLE 20.2 - 1

AQIA Trigger Levels

Emission Rate

Air Contaminant (lb/hr) (lb/day) (tons/yr)

Particulate Matter (PM10)

Fine Particulates Matter (PM2.5)

---

100

67

15

10

Oxides of Nitrogen (NOx) 25 250 40

Oxides of Sulfur (SOx) 25 250 40

Carbon Monoxide (CO) 100 550 100

Lead and Lead Compounds --- 3.2 0.6

(ii) AQIA for Replacement Emission UnitsPM2.5 and PM10 Emission

Increases

For each replacement project which results in an emission increase equal to or

greater than any of the amounts listed in Table 20.2-1, the applicant shall

demonstrate to the satisfaction of the Air Pollution Control Officer through an

AQIA, that the replacement project will not:

(A) cause a violation of a state or national ambient air quality standard

anywhere that does not already exceed such standard, nor

(B) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded, nor

(C) cause additional violations of a state ambient air quality standard

anywhere the standard is already being exceeded, except as provided for in

Subsection (d)(2)(v), nor

(D) prevent or interfere with the attainment or maintenance of any state

or national ambient air quality standard.

If a PM10 AQIA is required, the AQIA shall include both directly emitted

PM10 and PM10 which would be formed by precursor air contaminants prior to

discharge to the atmosphere. In determining if a PM2.5 or PM10 AQIA is required

under this Subsection (d)(2), the emissions increases shall include both directly

emitted PM2.5 and PM10, and PM2.5 and PM10 which would condense after discharge

to the atmosphere. If a PM2.5 or PM10 AQIA is required, the AQIA shall include

both directly emitted PM2.5 or PM10, and PM2.5 or PM10 which would condense after

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discharge to the atmosphere. Any permit terms or conditions limiting emissions of

PM2.5 or PM10 as a result of the requirements of this Subsection (d)(2) shall apply to

the combination of both directly emitted and condensable PM2.5 or PM10. The

provisions of this Subsection (d)(2)(ii) shall apply separately to PM2.5 and PM10.

(iii) AQIA for Relocated Emission UnitsProjects

Prior to issuance of a permit allowing an emission unit or a project to be

relocated from one stationary source to another, the applicant shall demonstrate to

the satisfaction of the Air Pollution Control Officer through an AQIA, that

operating the emission unit or project at the new location will not:

(A) cause a violation of a state or national ambient air quality standard

anywhere that does not already exceed such standard, nor

(B) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded, nor

(C) cause additional violations of a state ambient air quality standard

anywhere the standard is already being exceeded, except as provided for in

Subsection (d)(2)(v), nor

(D) prevent or interfere with the attainment or maintenance of any state

or national ambient air quality standard.

This demonstration is required for each air contaminant for which the project

has a potential to emit equal to or greater than the amounts listed in Table 20.2-1. If

a PM10 AQIA is required, the AQIA shall include both directly emitted PM10 and

PM10 which would be formed by precursor air contaminants prior to discharge to

the atmosphere. Where a project consists of multiple new, modified, replacement or

relocated emission units, the determination of whether an air quality impact analysis

is required under this Subsection (d)(2) shall be based on the aggregate total of

emission increases occurring from those project emission units for which emissions

are increasing, excluding any concurrent actual emission reductions occurring from

other emission units at the same stationary source. If an air quality impact analysis

is required, the air quality impacts of the project shall be based on the aggregate of

the air quality impacts of each unit’s emission increases at each off-site location

analyzed. The simultaneous air quality impact reduction at each off-site location

analyzed that results from any concurrent, enforceable actual emission reductions

occurring from other emission units at the same stationary source may be included

to determine the net air quality impacts of a project at each off-site location.

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(iv) AQIA Not Required for NOx or VOC Impacts on Ozone

Notwithstanding the requirements of this Subsections (d)(2), (i), (ii), or (iii) a

demonstration shall not be required for determining the impacts from an emission

unit’s or project’s NOx or VOC emissions on the state or national an ambient air

quality standard for ozone unless the Air Pollution Control Officer determines that

adequate procedures exist for determining the impacts of NOx or VOC emissions

from point sources such emission unit or project on ozone ambient air quality

standards and that such procedures are acceptable to the California Air Resources

Board (ARB) with regard to state ambient air quality standards orand the federal

Environmental Protection Agency (EPA) with regard to national ambient air quality

standards.

(v) AQIA Requirements for PM10 Impacts May be Waived

Notwithstanding the requirements of Subsection (d)(2)(i), (ii), or (iii), the Air

Pollution Control Officer may waive the AQIA requirements for PM10 impacts on

the state ambient air quality standards, as follows:

(A) If the project will result in a maximum PM10 air quality impact of

less than 5 µg/m3 (24-hour average basis) and 3 µg/m3 (annual geometric

mean basis), all of the project’s PM10 emission increases, including area

fugitive emissions of PM10, must be offset at a ratio of 1.5 to 1.

(B) If the project will result in a maximum PM10 air quality impact

equal to or greater than 5 µg/m3 but less than 10 µg/m3 (24-hour average

basis) or equal to or greater than 3 µg/m3 but less than 6 µg/m3 (annual

geometric mean basis):

(1) the project must be equipped with BACT for PM10 emissions

without consideration for cost-effectiveness,

(2) all of the project’s PM10 emission increases, including area

fugitive emissions of PM10, must be offset at an overall ratio of 1.5 to 1,

(3) sufficient emission offsets must be provided within the pro-

ject’s impact area to offset all of the project’s PM10 emission increases,

including area fugitive emissions of PM10, at a ratio of at least 1 to 1,

(4) emission offsets in an amount and location which are

demonstrated to have a modeled off-stationary source air quality impact

at least equal to the project’s PM10 ambient air quality impact minus 5

µg/m3 (24-hour average basis) and 3 µg/m3 (annual geometric mean

basis) must be provided, and

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(5) all reasonable efforts to reduce the air quality impacts of the

project are made.

(C) In no case shall the project result in a maximum PM10 air quality

impact equal to or greater than 10 µg/m3 (24-hour average basis) or equal to

or greater than 6 µg/m3 (annual geometric mean basis).

(vi) AQIA May be Required

(A) Notwithstanding any other provision of this rule, the Air Pollution

Control Officer may require an AQIA, for any new or modified stationary

source, any new or modified emission unit or any project if the stationary

source, emission unit or project may be expected to:

(A1) cause a violation of a state or national ambient air quality

standard anywhere that does not already exceed such standard, or

(B2) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded, or

(C) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(viii), or

(D3) prevent or interfere with the attainment or maintenance of

any state or national ambient air quality standard.

The Air Pollution Control Officer shall deny an Authority to Construct

or modified Permit to Operate for any stationary source, emission unit or

project for which an AQIA is required pursuant to this Subsection

(d)(2)(vi)(A) unless the applicant demonstrates to the satisfaction of the Air

Pollution Control Officer that the emission increases from such source, unit or

project will not result in any of the impacts to the national ambient air quality

standards specified above in (1), (2) and (3) of this Subsection (d)(2)(vi)(A).

(B) Notwithstanding any other provision of this rule, the Air Pollution

Control Officer may require an AQIA for any new or modified stationary

source, any new or modified emission unit or any project if the stationary

source, emission unit or project may be expected to:

(1) cause a violation of a state ambient air quality standard

anywhere that does not already exceed such standard, or

(2) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(v), or

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(3) prevent or interfere with the attainment or maintenance of a

state ambient air quality standard.

The Air Pollution Control Officer shall deny an Authority to Construct

or modified Permit to Operate for any stationary source, emission unit or

project for which an AQIA is required pursuant to this Subsection

(d)(2)(vi)(B) unless the applicant demonstrates to the satisfaction of the Air

Pollution Control Officer that the emission increases from such source, unit or

project will not result in any of the impacts to state ambient air quality

standards specified above in (1), (2) and (3) of this Subsection (d)(2)(vi)(B).

(3) PREVENTION OF SIGNIFICANT DETERIORATION (PSD)SIGNIFICANT IMPACT

IN CLASS I AREAS

The Air Pollution Control Officer shall not issue an Authority to Construct or

modified Permit to Operate for any emission unit or project which is expected to have a

significant impact on any Class I area, as determined by an AQIA required pursuant to

Subsection (d)(2), unless the following requirements are satisfied. The Air Pollution

Control Officer shall:

(i) Federal Land Manager and Federal EPA Notification

Notify the Federal Land Manager and the federal EPA, in writing. This

notification shall include all of the information specified by Subsection (d)(4)(iv),

the location of the project, the project’s approximate distance from all Class I areas

within 100 km of San Diego County (as specified in Table 20.1 - 3) and the results

of the AQIA, and

(ii) ARB, SCAQMD and Imperial County APCD Notification

Notify and submit to the California ARB, the South Coast Air Quality

Management District and the Imperial County Air Pollution Control District the

information specified in Subsection (d)(4)(iv).

(4) PUBLIC NOTICE AND COMMENT

The Air Pollution Control Officer shall not issue an Authority to Construct or

modified Permit to Operate for any emission unit or project subject to the AQIA or

notification requirements of Subsection (d)(2) or (d)(3), nor for any emission unit or

project which results in an emissions increase of VOCs equal to or greater than 250

pounds per day or 40 tons per year, unless the following requirements are satisfied.

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(i) Public Comment Period

At least 40 days before taking final action on an application subject to the

requirements of Subsection (d)(2) or (d)(3), the Air Pollution Control Officer shall:

(A) provide the public with notice of the proposed action in the manner

prescribed by Subsection (d)(4)(iii), and

(B) provide a copy of the public notice to the federal EPA

Administrator, through its Region 9 office, to the California ARB and to any

tribal air pollution control agencies having jurisdiction in the San Diego Air

Basin, and

(BC) make available for public inspection all information relevant to the

proposed action as specified in Subsection (d)(4)(iv), and

(CD) provide at least a 30-day period within which comments may be

submitted.

The Air Pollution Control Officer shall consider all comments submitted.

(ii) Applicant Response

Except as agreed to by the applicant and the Air Pollution Control Officer, no

later than 10 days after close of the public comment period, the applicant may

submit written responses to any comment received during the public comment

period. Responses submitted by the applicant shall be considered prior to the Air

Pollution Control Officer taking final action. The applicant's responses shall be

made available for public reviewin the public record of the permit action.

(iii) Publication of Notice

The Air Pollution Control Officer shall publish a notice of the proposed action

in at least one newspaper of general circulation in San Diego County. The notice

shall:

(A) describe the proposed action, including the use of any modified or

substitute air quality impact model as allowed under 40 CFR Part 51,

Appendix W, and

(B) identify the location(s) where the public may inspect the

information relevant to the proposed action, and

(C) indicate the date by which all comments must be received by the

District for consideration prior to taking final action.

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(iv) Information to be Made Available for Public Inspection

The relevant information to be made available for public inspection shall

include but not be limited to:

(A) the application and all analyses and documentation used to support

the proposed action, the District's evaluation of the project, a copy of the draft

Authority to Construct or modified Permit to Operate and any information

submitted by the applicant not previously labeled Trade Secret pursuant to

Regulation IX, and

(B) the proposed District action on the application, including the

preliminary decision to approve, conditionally approve or deny the application

and the reasons therefore.

(5) RESERVED (Rev. Adopted 11/4/98; Effective 12/17/98)

(6) RESERVED (Rev. Adopted 11/4/98; Effective 12/17/98)

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San Diego County Air Pollution Control District Rule 20.3

Regulation II/ Post-Workshop Draft – 10/07/15 -i-

RULE 20.3

NEW SOURCE REVIEW

MAJOR STATIONARY SOURCES AND PSD STATIONARY SOURCES

(ADOPTED AND EFFECTIVE 5/17/94)

(REV. ADOPTED AND EFFECTIVE 12/17/97)

(REV. ADOPTED 11/4/98; EFFECTIVE 12/17/98)

(REV. ADOPTED (date of adoption); EFFECTIVE (date of EPA approval into SIP)

Table of Contents

SECTION TITLE PAGE NO.

(a) APPLICABILITY ............................................................................................................ 1

(b) EXEMPTIONS ................................................................................................................ 1

(c) DEFINITIONS ................................................................................................................. 2

(d) STANDARDS .................................................................................................................. 2

(1) Best Available Control Technology (BACT) and Lowest Achievable

Emission Rate (LAER) ........................................................................................... 2

(i) New or Modified Emission Units - BACT ................................................... 2

(ii) Relocated Emission Units - BACT ............................................................... 3

(iii) Replacement Emission Units - BACT .......................................................... 3

(iv) Emergency Equipment Emission Units......................................................... 3

(v) Lowest Achievable Emission Rate (LAER) .................................................. 3

(vi) New, or Modified, Relocated or Replacement Emission Units – PSD

Stationary Sources ......................................................................................... 4

(vii) Projects with Multiple Emission Units ......................................................... 4

(2) Air Quality Impact Analysis (AQIA) ...................................................................... 5

(i) AQIA for New, or Modified, Replacement or Relocated Emission Units

and Projects ................................................................................................... 5

Table 20.3 - 1: AQIA Trigger Levels ............................................................ 6

(ii) AQIA for ReplacementPM2.5 and PM10 Emission UnitsIncreases................ 6

(iii) AQIA for Relocated Emission UnitsProjects ................................................ 7

(iv) AQIA Not Required for NOx or VOC Impacts on Ozone ............................ 8

(v) AQIA Requirements for PM10 Impacts May be Waived ............................. 8

(vi) AQIA May be Required ................................................................................ 9

(3) Prevention of Significant Deterioration (PSD) ..................................................... 11

(i) Applicability ................................................................................................. 11

(ii) Notification Requirements ........................................................................... 12

(iii) Air Quality Impact Analysis (AQIA) ........................................................... 12

(iv) Air Quality Increment .................................................................................. 13

(v) Additional Impacts Analyses........................................................................ 14

(vi) Protection of Class I Areas ........................................................................... 15

(vii) Additional Requirements ............................................................................. 15

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Table of Contents

SECTION TITLE PAGE NO.

(4) Public Notice and Comment ................................................................................. 16

(i) Public Comment Period ............................................................................... 16

(ii) Applicant Response ...................................................................................... 17

(iii) Publication of Notice.................................................................................... 17

(iv) Information to be Made Available for Public Inspection ............................. 17

(5) Emission Offsets Requirements ............................................................................ 18

(i) RESERVEDDetermination of Applicability............................................... 18

(ii) RESERVEDEmission Offsets .................................................................... 18

(iii) RESERVED ................................................................................................ 19

(iv) RESERVED ................................................................................................ 19

(v) Offset Requirements - Air Contaminant Emission Control Projects

Installed Pursuant to District Rules and Regulations ................................... 19

(viiii) Interpollutant Offsets Ratios ........................................................................ 19

Table 20.3-2: Interpollutant Ratios ........................................................... 20

(6) Emission Offset - Requirements: Use of District Bank Emission Reduction

Credits (ERCs) ...................................................................................................... 20

(7) Exemptions from LAER ....................................................................................... 20

(8) LAER and Offset Provisions Requirements ......................................................... 20

(i) Requirements................................................................................................ 20

(e) ADDITIONAL REQUIREMENTS–FEDERAL MAJOR STATIONARY SOURCES . 22

(1) Compliance Certification ...................................................................................... 22

(2) Alternative Siting and Alternatives Analysis ........................................................ 23

(3) Analysis of Visibility Impairment in Class I Areas…………… .. ………………23

NOTE: The following listed sections and subsections will not be submitted to the federal

Environmental Protection Agency (EPA) for inclusion in the San Diego State

Implementation Plan (SIP). As such, the following listed sections and subsections

are not enforceable by EPA, but remain enforceable by the San Diego County Air

Pollution Control District.:

Subsections (b)(1) and (b)(2); (b)(3), Subsections (d)(1)(i), (d)(1)(ii), (d)(1)(iii),

(d)(1)(iv) and (d)(1)(vi); Subsections (d)(2)(vi)(B), (d)(2)(v), and (d)(2)(vi)(B); and,

Subsection (d)(3) (d)(5)(i), (d)(5)(ii) and (d)(5)(iv).

Subsections (d)(2)(i) through (d)(2)(iv), and (d)(2)(vi) will be submitted to EPA for inclusion

in to the SIP with respect to national ambient air quality standards.

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RULE 20.3. NEW SOURCE REVIEW - MAJOR STATIONARY SOURCES

AND PREVENTION OF SIGNIFICANT DETERIORATION (PSD)

STATIONARY SOURCES

(Adopted & Effective 5/17/94; Rev. Effective 12/17/97)

(Rev. Adopted 11/4/98; Effective 12/17/98)

(Rev. Adopted (date of adoption); & Effective (date of adoption EPA

approval into SIP))

(a) APPLICABILITY

This rule applies to any new or modified major stationary source, to any new or modified

emission unit, to any replacement emission unit, and to any relocated emission unit being

moved from to a stationary source if, after completion of the project, the stationary source will

be a major stationary source or a Prevention of Significant Deterioration (PSD) Stationary

Source. This rule does not apply to identical or like-kind replacement emission units exempt

from Authority to Construct and modified Permit to Operate requirements pursuant to these

Rules and Regulations. This rule does not apply to any portable emission unit. Compliance

with this rule does not relieve a person from having to comply with other applicable

requirements in these rules and regulations, or state and federal law.

(b) EXEMPTIONS

The exemptions contained in Rule 20.1, Section (b) apply to this rule. In addition, for

purposes of this rule, the following exemptions shall apply.

(1) An existing permitted Eemission units which areis to be temporarily relocated

from one stationary source within San Diego County to another stationary source shall be

exempt from the provisionsBACT requirements of Subsection (d)(1)(ii) provided that:

(i) The emission unit is not being modified,

(ii) There is no increase in the emission unit’s potential to emit,

(iii) The unit is not located for more than 180 days at the stationary source

where it is moved to, and

(iv) The emission unit is not located at more than two stationary sources over

any 365-day period, and

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(v) The emission unit at the new location does not constitute a new federal

major stationary source nor a federal major modification.

(2) An existing permitted Eemission units which are is intended to be

permanently relocated from one stationary source within San Diego County to another

stationary source shall be exempt from the provisionsBACT requirements of Subsection

(d)(1)(ii), provided that:

(i) There is no increase in the emission unit’s potential to emit,

(ii) The relocation occurs within 10 miles of the previous stationary source,

and

(iii) The relocated emission unit commences operating at the stationary

source it was relocated to within one year of the emission unit ceasing operations at

its previous stationary source, and

(iv) The emission unit at the new location does not constitute a new federal

major stationary source nor a federal major modification.

(3) Emission increases resulting from an air contaminant emission control project

shall be exempt from the emission offset requirements of Subsection (d)(5), (d)(6), (d)(7)

and (d)(8) of this rule to the extent that the project does not include an increase in the

capacity of the emission unit being controlled. Emission increases that are associated with

an increase in capacity of the emission unit being controlled shall be subject to the

emission offset provisions of this rule, as applicable. This exemption from offsets shall

not apply to any air contaminant for which the emissions increase constitutes a new

federal major stationary source or a federal major modification.

(c) DEFINITIONS

The definitions contained in Rule 20.1, Section (c) apply to this rule.

(d) STANDARDS (Rev. Adopted 11/4/98; Effective 12/17/98)

(1) BEST AVAILABLE CONTROL TECHNOLOGY (BACT) AND LOWEST

ACHIEVABLE EMISSION RATE (LAER)

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any emission unit and project subject to this rule unless the applicant

demonstrates that the following requirements will be satisfied:

(i) New or Modified Emission Units - BACT

Except as provided in Subsection (d)(1)(v), any new or modified emission unit

which has any increase in its potential to emit particulate matter (PM10), oxides of

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nitrogen (NOx), volatile organic compounds (VOC), or oxides of sulfur (SOx) and

which unit has a post-project potential to emit 10 pounds per day or more of PM10,

NOx, VOC or SOx shall be equipped with BACT for each such air contaminant.

(ii) Relocated Emission Units - BACT

Except as provided in Subsections (b)(1), (b)(2) and (d)(1)(v), and except as

provided for in Subsections (b)(2) and (b)(3), any relocated emission unit with a

post-project potential to emit of 10 pounds per day or more of PM10, NOx, VOC or

SOx shall be equipped with BACT for each such air contaminant.

(iii) Replacement Emission Units - BACT

Except as provided in Subsection (d)(1)(v), any replacement emission unit with

a post-project potential to emit of 10 pounds per day or more of PM10, NOx, VOC or

SOx shall be equipped with BACT for each such air contaminant. This provision

shall not apply to identical or like-kind replacements exempt from Authority to

Construct and modified Permit to Operate requirements pursuant to Rule 11.

(iv) Emergency Equipment Emission Units

Any new or modified emergency equipment emission unit which has any

increase in its potential to emit and which unit has a post-project potential to emit of

10 pounds per day or more of PM10, NOx, VOC or SOx shall be equipped with

BACT for each such air contaminant.For any emergency equipment emission unit

subject to the BACT requirements of Subsections (d)(1)(i), (ii), (iii) or (vi) of this

rule, BACT shall apply based on the unit’s non-emergency operation emissions and

excluding the unit’s emissions while operating during emergency situations.

(v) Lowest Achievable Emission Rate (LAER)

(A) Except as provided for in Subsections paragraphs (d)(1)(iv)(B) and

(C)(d)(7) below, LAER shall be required for each new, modified, relocated or

replacement emission unit and project which results in an emissions increase

which constitutes a new major stationary source or major modification. LAER

shall be required only for those air contaminants and their precursors for which

the stationary source is major and for which the District is classified as non-

attainment of a national ambient air quality standard.

(B) If actual emission reductions of VOC or NOx, as applicable, are

provided from within the stationary source at a ratio of at least 1.3 to 1.0 for the

emissions increases of VOC or NOx from an emissions unit or project subject

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to the LAER provisions of this Subsection (d)(1)(v), such emission increases

shall be exempt from the requirement for LAER and from further emission

offsets under Subsection (d)(5) of this rule and shall instead be subject to

BACT.

(C) A new, modified, relocated or replacement emission unit or project

at an existing major stationary source which results in an emission increase of

VOC or NOx, and which increase would be otherwise subject to LAER, shall

be subject to BACT instead of LAER provided the stationary source's post-

project aggregate potential to emit is less than 100 tons per year of VOC or

NOx. This provision shall apply on a pollutant-specific basis.

(vi) New, or Modified, Relocated or Replacement Emission Units – PSD

Stationary Sources

Any new, or modified, relocated or replacement emission unit at a PSD

stationary source, which emission unit has an emission increase of one or more air

contaminants which constitutes a new PSD stationary source (see Table 20.1-11) or

PSD modification (see Tables 20.1-8 and 20.1-10), shall be equipped with BACT for

each such air contaminant.

(vii) Projects with Multiple Emission Units

Where a project at a stationary source consists of more than one new, modified,

relocated or replacement emission unit required by this Subsection (d)(1) to be

equipped with BACT or LAER, BACT or LAER, as applicable, shall be evaluated

for each such emission unit. The Air Pollution Control Officer may require that

BACT or LAER, as applicable, be also evaluated for combinations of such emission

units in addition to being evaluated for each individual emission unit. Where

technologically feasible, lowest emitting and, for BACT, cost-effective, the Air

Pollution Control Officer may require that BACT or LAER be applied to a

combination of such emission units. In such case, BACT or LAER applied to such

combinations shall not result in greater emissions for the project nor for each

emission unit that is part of the project than were BACT or LAER, as applicable,

applied to each emission unit.

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(2) AIR QUALITY IMPACT ANALYSIS (AQIA)

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any emission unit or project subject to this rule unless the following

requirements are satisfied. Area fugitive emissions of PM10 shall not be included in the

demonstrations required below unless the Air Pollution Control Officer determines, on a

case-by-case basis, that a project’s area fugitive emissions of PM10 must be evaluated in

order to protect public health and welfare.

The demonstrations required by this Subsection (d)(2) shall be based on the emission

unit or project emission exhaust system design and discharge characteristics but not to an

extent greater than good engineering practice stack height. This provision shall not be

applied to limit actual stack height.

(i) AQIA for New, or Modified, Replacement or Relocated Emission

Units and Projects

(A) For each new, modified, replacement or relocated emission unit and

project which results in an emissions increase equal to or greater than any of

the amounts listed in Table 20.3 – 1 below, the applicant shall demonstrate to

the satisfaction of the Air Pollution Control Officer through an AQIA, as

defined in Rule 20.1, that the project such emissions increase will not:

(A1) cause a violation of a state or national ambient air quality

standard anywhere that does not already exceed such standard, nor

(B2) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded, nor

(C) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(viii), nor

(D3) prevent or interfere with the attainment or maintenance of any

state or national ambient air quality standard., nor

(4) by itself, result in an increase in ambient concentrations of any

air contaminant, for which San Diego County is in attainment of the

applicable national ambient air quality standards, greater than the

applicable air quality increment above the baseline concentration for that

air contaminant in any Class I or Class II area. This provision shall only

apply if the emissions increase constitutes a new federal major stationary

source or federal major modification.

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(B) For each new, modified, replacement or relocated emission unit and

project which results in an emissions increase equal to or greater than any of

the amounts listed in Table 20.3 – 1 below, the applicant shall demonstrate to

the satisfaction of the Air Pollution Control Officer, through an AQIA, that

such emissions increase will not:

(1) cause a violation of a state ambient air quality standard

anywhere that does not already exceed such standard, nor

(2) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(iiiv), nor

(3) prevent or interfere with the attainment or maintenance of any

state ambient air quality standard.

If a PM10 AQIA is required, the AQIA shall include both directly emitted PM10

and PM10 which would be formed by precursor air contaminants prior to discharge to

the atmosphere.

TABLE 20.3 - 1

AQIA Trigger Levels

Emission Rate

Air Contaminant (lb/hr) (lb/day) (tons/yr)

Particulate Matter (PM10) --- 100 15

Fine Particulates Matter (PM2.5) --- 67 10

Oxides of Nitrogen (NOx) 25 250 40

Oxides of Sulfur (SOx) 25 250 40

Carbon Monoxide (CO) 100 550 100

Lead and Lead Compounds --- 3.2 0.6

(ii) AQIA for Replacement PM2.5 and PM10 Emission UnitsIncreases

For each replacement project which results in an emission increase equal to or

greater than any of the amounts listed in Table 20.3 - 1, the applicant shall demon-

strate to the satisfaction of the Air Pollution Control Officer through an AQIA, that

the replacement project will not:

(A) cause a violation of a state or national ambient air quality standard

anywhere that does not already exceed such standard, nor

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(B) cause additional violations of a national ambient air quality standard

anywhere the standard is already being exceeded, nor

(C) cause additional violations of a state ambient air quality standard

anywhere the standard is already being exceeded, except as provided for in

Subsection (d)(2)(v), nor

(D) prevent or interfere with the attainment or maintenance of any state

or national ambient air quality standard.

If a PM10 AQIA is required, the AQIA shall include both directly emitted

PM10 and PM10 which would be formed by precursor air contaminants prior to

discharge to the atmosphere. In determining if a PM2.5 or PM10 AQIA is required

under this Subsection (d)(2), the emissions increases shall include both directly

emitted PM2.5 and PM10, and PM2.5 and PM10 which would condense after discharge

to the atmosphere. If a PM2.5 or PM10 AQIA is required, the AQIA shall include

both directly emitted PM2.5 or PM10, and PM2.5 or PM10 which would condense after

discharge to the atmosphere. Any permit terms or conditions limiting emissions of

PM2.5 or PM10 as a result of the requirements of this Subsection (d)(2) shall apply to

the combination of both directly emitted and condensable PM2.5 or PM10. The

provisions of this Subsection (d)(2)(ii) shall apply separately to PM2.5 and PM10.

(iii) AQIA for Relocated Emission UnitsProjects

Prior to issuance of a permit allowing an emission unit or a project to be relo-

cated to a major stationary source, the applicant shall demonstrate to the satisfaction

of the Air Pollution Control Officer through an AQIA, that operating the emission

unit or project at the new location will not:

(A) cause a violation of a state or national ambient air quality standard

anywhere that does not already exceed such standard,

(B) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded,

(C) cause additional violations of a state ambient air quality standard

anywhere the standard is already being exceeded, except as provided for in

Subsection (d)(2)(v) below, nor

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(D) prevent or interfere with the attainment or maintenance of any state

or national ambient air quality standard.

This demonstration is required for each air contaminant for which the project

has a potential to emit equal to or greater than the amounts listed in Table 20.3 - 1.

If a PM10 AQIA is required, the AQIA shall include both directly emitted PM10 and

PM10 which would be formed by precursor air contaminants prior to discharge to the

atmosphere. Where a project consists of multiple new, modified, replacement or

relocated emission units, the determination of whether an air quality impact analysis

is required under this Subsection (d)(2) shall be based on the aggregate total of

emissions increases occurring from those project emission units for which emissions

are increasing, excluding any concurrent actual emission reductions occurring from

other emission units at the same stationary source. If an air quality impact analysis

is required, the air quality impacts of the project shall be based on the aggregate of

the air quality impacts of each unit’s emission increases at each off-site location

analyzed. The air quality impact reduction at any off-site location analyzed that

results from any concurrent, enforceable actual emission reductions occurring from

other emission units, at the same stationary source, may be included to determine the

net air quality impacts of a project at such off-site location.

(iv) AQIA Not Required for NOx or VOC Impacts on Ozone

Notwithstanding the requirements of this Subsections (d)(2)(i), (ii), or (iii) a

demonstration shall not be required for determining the impacts from an emission

unit’s or project’s NOx or VOC emissions on the state or national an ambient air

quality standard for ozone, unless the Air Pollution Control Officer determines that

adequate procedures exist for determining the impacts of NOx or VOC emissions

from point sources such emission unit or project on ozone ambient air quality

standards and that such procedures are acceptable to the California Air Resources

Board (ARB) with regard to state ambient air quality standards orand the federal

Environmental Protection Agency (EPA) with regard to national ambient air quality

standards.

(v) AQIA Requirements for PM10 Impacts May be Waived

Notwithstanding the requirements of Subsection (d)(2)(i), (ii), or (iii) the Air

Pollution Control Officer may waive the AQIA requirements for PM10 impacts on

the state ambient air quality standards, as follows:

(A) If the project will result in a maximum PM10 air quality impact of

less than 5 µg/m3 (24-hour average basis) and 3 µg/m3 (annual geometric

mean basis), all of the project’s PM10 emission increases, including area

fugitive emissions of PM10, must be offset at a ratio of 1.5 to 1.

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(B) If the project will result in a maximum PM10 air quality impact

equal to or greater than 5 µg/m3 but less than 10 µg/m3 (24-hour average

basis) or equal to or greater than 3 µg/m3 but less than 6 µg/m3 (annual

geometric mean basis):

(1) the project must be equipped with BACT for PM10 emissions

without consideration for cost-effectiveness,

(2) all of the project’s PM10 emission increases, including area

fugitive emissions of PM10, must be offset at an overall ratio of 1.5 to 1,

(3) sufficient emission offsets must be provided within the pro-

ject’s impact area to offset all of the project’s PM10 emission increases,

including area fugitive emissions of PM10, at a ratio of at least 1 to 1,

(4) emission offsets in an amount and location which are demon-

strated to have a modeled off-stationary source air quality impact at least

equal to the project’s PM10 ambient air quality impact minus 5 µg/m3

(24-hour average basis) and 3 µg/m3 (annual geometric mean basis) must

be provided, and

(5) all reasonable efforts to reduce the air quality impacts of the

project are made.

(C) In no case shall the project result in a maximum PM10 air quality

impact equal to or greater than 10 µg/m3 (24-hour average basis) or equal to or

greater than 6 µg/m3 (annual geometric mean basis).

(vi) AQIA May be Required

(A) Notwithstanding any other provision of this rule, the Air Pollution

Control Officer may require an AQIA for any new or modified stationary

source, any emission unit or any project if the stationary source, emission unit

or project may be expected to:

(A1) cause a violation of a state or national ambient air quality

standard anywhere that does not already exceed such standard, or

(B2) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded, or

(C) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(v), or

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(D3) prevent or interfere with the attainment or maintenance of any

state or national ambient air quality standard, or

(4) by itself, result in an increase in ambient concentrations of

any air contaminant, for which San Diego County is in attainment of the

applicable national ambient air quality standards, greater than the

applicable air quality increment above the baseline concentration for that

air contaminant in any Class I or Class II area. This provision shall only

apply if the emissions increase constitutes a new federal major stationary

source or federal major modification.

The Air Pollution Control Officer shall deny an Authority to Construct

or modified Permit to Operate for any stationary source, emission unit or

project for which an AQIA is required pursuant to this Subsection

(d)(2)(vi)(A) unless the applicant demonstrates to the satisfaction of the Air

Pollution Control Officer that the emission increases from such source, unit or

project will not result in any of the impacts to the national ambient air quality

standards or an air quality increment specified above in (1), (2), (3) and (4) of

this Subsection (d)(2)(vi)(A).

(B) Notwithstanding any other provision of this rule, the Air Pollution

Control Officer may require an AQIA for any new or modified stationary

source, any emission unit or any project if the stationary source, emission unit

or project may be expected to:

(1) cause a violation of a state ambient air quality standard

anywhere that does not already exceed such standard, or

(2) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(v), or

(3) prevent or interfere with the attainment or maintenance of any

state ambient air quality standard.

The Air Pollution Control Officer shall deny an Authority to Construct

or modified Permit to Operate for any stationary source, emission unit or

project for which an AQIA is required pursuant to this Subsection

(d)(2)(vi)(B) unless the applicant demonstrates to the satisfaction of the Air

Pollution Control Officer that the emissions increases from such source, unit

or project will not result in any of the impacts to state ambient air quality

standards specified above in (1), (2) and (3) of this Subsection (d)(2)(vi)(B).

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(3) PREVENTION OF SIGNIFICANT DETERIORATION (PSD)

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any project subject to this ruleSubsection (d)(3) unless the applicant

demonstrates that the following requirements are satisfied. The demonstrations required

by this Subsection (d)(3) shall be based on the emission unit or project emission exhaust

system design and discharge characteristics but not to an extent greater than good

engineering practice stack height. This provision shall not be applied to limit actual stack

height.

(i) Applicability

(A) New PSD Stationary Sources and PSD Modification

(1) The provisions of Subsections (d)(3)(ii) through (vii) below

shall apply to any new PSD stationary source and to any PSD

modification, for those air contaminants for which the District is

classified as attainment or unclassified with respect to a national ambient

air quality standard.

(2) The provisions of Subsections (d)(3)(ii), (iii), (v) and (vii)

below shall apply to any emission increase of a non-criteria air

contaminant at a PSD stationary source with a potential to emit equal to

or greater than a non-criteria pollutant emissions significance level (see

Table 20.1-8) for the air contaminant.

(B) Major Stationary Sources – Projects Causing a Significant Impact

The provisions of Subsections (d)(3)(ii) through (vii) shall apply to any

project at a new or modified major stationary source, which project is expected

to have a significant impact on any Class I area, as determined by an AQIA

required pursuant to Subsection (d)(2), regardless of the Class I area’s national

attainment or non-attainment classification. For Class II areas, the provisions

of Subsections (d)(3)(ii) through (vii) apply only if, in addition to causing a

significant impact, the Class II area where the significant impact occurs is

classified as attainment of the national ambient air quality standard for that

pollutant:

(1) a significant impact on any Class I area, regardless of the

Class I area’s national attainment or nonattainment classification, or

(2) a significant impact on any Class II area where the Class II

area is classified as attainment of the national ambient air quality

standard for that air contaminant for which there is a significant impact.

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(C) Non-Criteria Pollutant Emissions Significance Levels

The provisions of Subsections (d)(3)(ii), (iii), (v) and (vii) shall apply to

any emission increase of a non-criteria air contaminant at a PSD stationary

source with a potential to emit equal to or greater than a non-criteria pollutant

emissions significance level (see Table 20.1-8) for the air contaminant.

(ii) Notification Requirements

(A) Notification of Federal Land Manager - Before Application

Submittal

The applicant shall provide written notification to the Federal Land

Manager of the applicant's intent to file an application for an Authority to

Construct, Permit to Operate, or a Determination of Compliance pursuant to

Rule 20.5, not less than 30 days prior to application submittal. The applicant's

notification to the Federal Land Manager shall include copies of all of the

analyses required by this Subsection (d)(3). Concurrently, the applicant shall

notify the federal EPA and the District, and provide copies of the written

notification given to the Federal Land Manager.

(B) Notification of Federal Land Manager - After Application Submittal

If a project is modified prior to issuance of an Authority to Construct

such that it becomes subject to Subsection (d)(3), the Air Pollution Control

Officer shall provide the notification required by Subsection (d)(3)(ii)(A) no

later than 15 days after it is determined that the provisions of Subsection (d)(3)

apply.

(C) Failure to Notify

If the applicant has failed to provide the notification required by Subsec-

tion (d)(3)(ii)(A) within the time periods described in that subsection, the

applicant shall provide the notification required by that subsection no later than

15 days after the Air Pollution Control Officer informs the applicant that the

provisions of Subsection (d)(3) apply.

(iii) Air Quality Impact Analysis (AQIA)

Notwithstanding the emission threshold requirements of Subsection (d)(2), the

applicant shall perform an AQIA as prescribed in Subsection (d)(2) for those

pollutants for which, pursuant to Subsection (d)(3)(i), Subsection (d)(3) applies. In

conducting the AQIA, projected growth calculated pursuant to (d)(3)(v)(A) shall be

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taken into account. The Air Pollution Control Officer shall comply with the public

comment and notice provisions of Subsection (d)(4) and with the following:

(A) Federal Land Manager and Federal EPA Notification

Notify the Federal Land Manager and EPA. This notification shall

include all of the analyses required by Subsection (d)(3), the location of the

project, the project’s approximate distance from all Class I areas within 100

km of San Diego County (as specified in Rule 20.1, Table 20.1 - 3), and the

results of the AQIA, at least 60 days prior to the public comment period

required by Subsection (d)(4).

(B) ARB, SCAQMD and Imperial County APCD Notification

Notify and submit to the California ARB, the South Coast Air Quality

Management District and the Imperial County Air Pollution Control District all

of the information required by Subsection (d)(4)(iv).

(iv) Air Quality Increment

If the stationary source is located in an area designated as attainment or

unclassified for the SOx2, NOx2, PM2.5 or PM10 national ambient air quality

standards pursuant to Section 107(d)(1)(D) or (E) of the federal Clean Air Act, the

following shall be satisfied:

(A) The applicant shall demonstrate to the satisfaction of the Air

Pollution Control Officer, using procedures approved by the Air Pollution

Control Officer, that the applicable air quality increments are not exceeded

within the project’s impact area.

(B) The demonstration required by Subsection (d)(3)(iv)(A) shall

include the following:

(1) a description of the federal attainment area where a significant

impact occurs and the attainment area's corresponding non-major minor

source baseline date, and

(2) an analysis of the air quality impacts of all increment con-

suming and increment expanding emissions within the impact area, and

(3) an analysis of the air quality impacts of increment consuming

and increment expanding emissions outside the impact area that may

have a significant impact within the impact area.

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(v) Additional Impacts Analyses

The analyses required by Subsections (d)(3)(v)(A) through (C) shall include

the impacts of total emissions which exceed a non-criteria emissions significance

level.

(A) Growth Analysis

The applicant shall prepare a growth analysis containing all of the

following:

(1) an assessment of the availability of residential, commercial,

and industrial services in the area surrounding the stationary source,

(2) a projection of the growth in residential, industrial and

commercial sources, construction related activities, and permanent and

temporary mobile sources which will result from the construction of the

new major stationary source or major modification, including any

secondary emissions associated with the construction,

(3) an estimate of the emission of all pollutants from the

projected growth, and

(4) a determination of the air quality impacts occurring due to the

combined emissions from the projected growth and the stationary

source's emissions increase.

(B) Soils &and Vegetation Analysis

The applicant shall perform an analysis of the impacts from air

contaminants on soils and vegetation containing all of the following:

(1) the analysis shall be based on an inventory of the soils and

vegetation types found in the impact area, including all vegetation with

any commercial or recreational value, and

(2) the analysis shall consider the impacts of the combined

emissions from projected growth as determined above, pursuant to

Subsection (d)(3)(v)(A) and the stationary source's emissions increase.

(C) Visibility Impairment Analysis

The applicant shall perform a visibility impairment analysis. The analy-

sis shall focus on the effects of the emission increases from the new PSD

stationary source or PSD modification and their impacts on visibility within

the impact area. The analysis shall include a catalog of scenic vistas, airports,

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or other areas which could be affected by a loss of visibility within the impact

area, a determination of the visual quality of the impact area, and an initial

screening of emission sources to assess the possibility of visibility impairment.

If the screening analysis indicates that a visibility impairment will occur, as

determined by the Air Pollution Control Officer, a more in-depth visibility

analysis shall be prepared.

(vi) Protection of Class I Areas

(A) Requirements

(1) An AQIA shall be prepared as prescribed in Subsection (d)(2)

for all emission increases attributable to the new or modified stationary

source, notwithstanding the emission threshold requirements of

Subsection (d)(2). The AQIA shall include a demonstration that the new

or modified stationary source will not cause or contribute to a violation

of any national ambient air quality standard nor interfere with the

attainment or maintenance of those standards.

(2) The analyses contained in Subsections (d)(3)(iii) through (v)

shall be prepared for all emission increases which will result in a

significant impact.

(B) Application Denial - Federal Land Manager/Air Pollution Control

Officer Concurrence

The Air Pollution Control Officer shall deny an Authority to Construct

for a new or modified stationary source subject to this Subsection (d)(3)(vi), if

the Federal Land Manager demonstrates, and the Air Pollution Control Officer

concurs, that granting the Authority to Construct would result in an adverse

impact on visibility, soils, vegetation or air quality related values of a Class I

area. The Air Pollution Control Officer shall take into consideration

mitigation measures identified by the Federal Land Manager in making the

determination.

(vii) Additional Requirements

(A) Tracking of Air Quality Increment Consumption Sources

The Air Pollution Control Officer shall track air quality increment con-

sumption, consistent with current requirements established by the federal EPA.

(B) Stack Height Requirement

The applicant for any new or modified PSD stationary source with a

stack height greater than 65 meters must demonstrate to the satisfaction of the

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Air Pollution Control Officer that the new or modified stationary source

complies with the Good Engineering Practice (GEP) requirements contained in

the 1993 version of 40 CFR 51.100(ii). The Air Pollution Control Officer may

specify compliance with a more recent version of the GEP requirements upon

finding that such specification will not significantly change the effect of this

paragraph and is necessary to carry out federal PSD requirements.

(CB) Preconstruction Monitoring Requirement

The applicant shall submit at least one year of continuous monitoring

data, unless the Air Pollution Control Officer determines that a complete and

adequate analysis can be accomplished with monitoring data gathered over a

shorter period. Such shorter period shall not be less than four consecutive

months. The requirement for monitoring may be waived by the Air Pollution

Control Officer if representative monitoring data is already available.

(DC) Cancellation of Authority to Construct

Any Authority to Construct or modified Permit to Operate issued to a

PSD stationary source subject to the provisions of Subsection (d)(3) of this

rule, shall become invalid if construction or modification is not commenced

within 18 months after its issuance or if construction or modification is

discontinued for a period of 18 months or more after its issuance. The 18-

month period may be extended by the Air Pollution Control Officer for good

cause.

(4) PUBLIC NOTICE AND COMMENT

The Air Pollution Control Officer shall not issue an Authority to Construct or modi-

fied Permit to Operate for any emission unit or project subject to the AQIA or notification

requirements of Subsections (d)(2) or (d)(3) above, nor for any emission unit or project

which results in an emissions increase of VOC equal to or greater than 250 pounds per

day or 40 tons per year, nor for any emission unit or project that would otherwise

constitute a new major stationary source or a major modification, unless the following

requirements are satisfied.

(i) Public Comment Period

At least 40 days before taking final action on an application, the Air Pollution

Control Officer shall:

(A) provide the public with notice of the proposed action in the manner

prescribed in Subsection (d)(4)(iii), and

(B) provide the California ARB, and federal EPA, and any tribal air

pollution control agencies having jurisdiction in the San Diego Air Basin with

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notice of the proposed action and all of the information specified in Subsection

(d)(4)(iv), and

(C) make available for public inspection all information relevant to the

proposed action as specified in Subsection (d)(4)(iv), and

(D) provide at least a 30-day period within which comments may be

submitted.

The Air Pollution Control Officer shall consider all comments submitted.

(ii) Applicant Response

Except as agreed to by the applicant and the Air Pollution Control Officer, no

later than 10 days after close of the public comment period, the applicant may

submit written responses to any comment received during the public comment

period. Responses submitted by the applicant shall be considered prior to the Air

Pollution Control Officer taking final action. The applicant's responses shall be

made available for public review in the public record of the permit action.

(iii) Publication of Notice

The Air Pollution Control Officer shall publish a notice of the proposed action

in at least one newspaper of general circulation in San Diego County. The notice

shall:

(A) describe the proposed action, including the use of any modified or

substitute air quality impact model as allowed under 40 CFR Part 51,

Appendix W, and

(B) identify the location(s) where the public may inspect the

information relevant to the proposed action, and

(C) indicate the date by which all comments must be received by the

District for consideration prior to taking final action.

(iv) Information to be Made Available for Public Inspection

The relevant information to be made available for public inspection shall

include, but not be limited to:

(A) the application and all analyses and documentation used to support

the proposed action, the District's evaluation of the project, a copy of the draft

Authority to Construct or modified Permit to Operate and any information

submitted by the applicant not previously labeled Trade Secret pursuant to

Regulation IX, and

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(B) the proposed District action on the application, including the

preliminary decision to approve, conditionally approve or deny the application

and the reasons therefor.

(5) EMISSION OFFSETS REQUIREMENTS (Rev. Adopted 11/4/98; Effective

12/17/98)

Except as provided for in Subsection (d)(8)(b)(3), the Air Pollution Control Officer

shall not issue an Authority to Construct or modified Permit to Operate for any new or

modified stationary source, new or modified emission unit, replacement or relocated

emission unit or project subject to this rule which results in an emissions increase that

constitutes a new major stationary source or a major modification for NOx or VOC, or for

any air contaminant, or its precursor air contaminants, for which the San Diego Air Basin

has been designated by EPA as nonattainment for the NAAQS for such air contaminant,

unless emission offsets are provided, on a pollutant-specific basis, for such emission

increases of non-attainment air contaminants and their precursors as specified below and

in Subsections (d)(6), (d)(7) and (d)(8) of this rule. Interpollutant offsets may be used,

provided such offsets meet the requirements of Subsection (d)(5)(viiii).

(i) RESERVEDDETERMINATION OF APPLICABILITY

The determination that a new emission unit, project or new stationary source is

a new major stationary source shall be based on the emission unit’s post-project

potential to emit, or the project’s or stationary source’s aggregate post-project

potential to emit, respectively. The determination that a new, modified, replacement

or relocated emission unit or project at an existing major stationary source is a major

modification shall be based on the stationary source’s contemporaneous net

emissions increase. These determinations shall be made on a pollutant-specific

basis.

The applicant for a new major stationary source or a new, modified,

replacement or relocated emission unit or project at an existing major stationary

source shall submit, with each application for such emission unit, project or source,

sufficient information to determine the emissions increases for the unit, project or

source, and the contemporaneous net emissions increases if located at an existing

major stationary source.

(ii) RESERVEDEMISSION OFFSETS

(A) If the NOx or VOC emissions increase from the project under

review constitutes a new major stationary source or a major modification, such

emissions increase shall be offset at a ratio of 1.2 to 1.0. For any other EPA

designated nonattainment air contaminant or its precursor for which the

emissions increase from the project under review constitutes a new major

stationary source or a major modification, such emissions increase shall be

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offset at a ratio of 1.0 to 1.0. Interpollutant offsets may be used provided they

meet the requirements of Subsection (d)(5)(iii) of this rule.

(B) When an emissions increase from a new, modified, replacement or

relocated emission unit or project has been determined to be subject to, and

approved as in compliance with, the emission offset requirements of this rule,

the contemporaneous net emissions increase for the subject air contaminant

shall thereafter not include the amount of such offset emissions increase from

the new or modified emission unit or project, on a pollutant-specific basis.

(C) When the emissions offset requirements of this Subsection (d)(5)

are being applied to a new federal major stationary source or federal major

modification, the amount of creditable emission reductions from any emission

reduction credits to be provided shall be adjusted as specified in Rule 20.1,

Subsection (d)(5)(v). Such adjustments shall be made at the time that an

Authority to Construct is issued, for credits provided by the applicant on or

before such issuance, and at the time that a credit is surrendered, for credits

provided by the applicant after issuance of the Authority to Construct.

(iii) RESERVED

(iv) RESERVED

(v) Offset Requirements - Air Contaminant Emission Control Projects

Installed Pursuant to District Rules and Regulations

If emission offsets are required for emission increases from an emission unit

resulting from the installation of an air contaminant emission control project to

comply with a requirement of these rules and regulations, but not including Rules

20.1, 20.2, 20.3, 20.4, or 20.5, Rules 26.0 through Rule 26.10, inclusive, or Rule

1200, the Air Pollution Control Officer may elect to provide a portion or all of the

emission offsets through the District Bank, consistent with the provisions of

Subsection (d)(6) of this rule. In order for the emission unit to be eligible to receive

emission reduction credits (ERCs) from the District Bank, the Air Pollution Control

Officer must determine that the following are satisfied:

(A) the air contaminant emission control project satisfies the applicable

requirements of these rules and regulations, and

(B) the amount of the ERCs to be obtained from the District Bank do

not exceed 10 tons per year on a pollutant specific basis.

(viiii) Interpollutant Offsets Ratios

The Air Pollution Control Officer may allow the use of interpollutant emission

offsets at the ratios specified in Table 20.3 – 2 to satisfy the VOC and NOx offset

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requirements of this Subsections (d)(5), (d)(6), (d)(7) and (d)(8) of this rule,. For

any other EPA-designated nonattainment air contaminant having precursor air

contaminant relationships specified in Table 20.1-9 of Rule 20.1, the Air Pollution

Control Officer may allow the use of interpollutant offsets of such precursor air

contaminants in addition to or in lieu of providing offsets of the nonattainment air

contaminant only if done pursuant to an interpollutant offset protocol approved by

the Air Pollution Control Officer and the federal EPA. Interpollutant offsets may

only be allowed if provided the applicant demonstrates, to the satisfaction of the Air

Pollution Control Officer, that the AQIA requirements of Subsection (d)(2), as

applicable, are satisfied for the emissions increases. The interpollutant ratios shall

be multiplied by the emission offset ratios required by this rule to determine the final

offset ratio.

TABLE 20.3 – 2

Interpollutant Ratio

Emission Increase

Decrease

Interpollutant

Ratio

Oxides of Nitrogen (NOx) NOx

VOC

1.0

2.0

Volatile Organic Compounds (VOC) VOC

NOx

1.0

1.0

(6) EMISSION OFFSET REQUIREMENTS: USE OF DISTRICT BANK EMISSION

REDUCTION CREDITS (ERCS)

The Air Pollution Control Officer may elect to provide emission offsets from a

District developed and maintained District Bank provided that the following are satisfied:

(i) The District Bank has been established consistent with the provisions of

Rule 26.0 et seq.,

(ii) The District Bank contains sufficient ERCs to allow for the emissions to

be fully offset, if necessary with a combination of emission reductions from the

District Bank and emission reductions provided directly by the affected stationary

source, and

(iii) Only banked ERCs in excess of those necessary to demonstrate

compliance with the no net increase permit program provisions of the California

Clean Air Act are utilized.

The use of District Bank ERCs shall be prioritized in the following order. In order

to make this prioritization, the Air Pollution Control Officer shall determine, based on a

review of the District’s permit program for the previous calendar year, the amount of

ERCs from the District Bank which are to be allocated for each category:

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(iv) For use to demonstrate compliance with the no net increase permit

program provisions of the California Clean Air Act, or

(v) For use by essential public service projects, provided the applicant

demonstrates to the satisfaction of the Air Pollution Control Officer, that the

applicant is unable to create or acquire some or all of the required emission offsets,

despite all reasonable efforts, and that the cost of some or all of the required offsets,

in dollars per pound of emission reduction credit, exceeds five times the cost of

control measures required to meet stationary source emission standards contained in

these rules and regulations, or

(vi) For use for air contaminant emission control projects as provided for in

Subsection (d)(5)(v) of this rule, and

(vii) For any other purpose approved by the Air Pollution Control Board and

in conformity with state and federal laws and requirements.

(7) EXEMPTION FROM LAER

Any stationary source which provides VOC or NOx emission reductions from within

the stationary source at a ratio of at least 1.3 to 1.0 for any increase of VOC or NOx

subject to the LAER provisions of Subsection (d)(1)(v), shall be exempt from the

requirements of this rule for LAER and from further emission offsets for such increases.

In addition, any modification of an existing stationary source which results in an emission

increase of VOC or NOx may apply BACT instead of LAER provided the stationary

source's post-project aggregate potential to emit is less than 100 tons per year of VOC or

NOx. This provision shall apply on a pollutant specific basis.

(8) LAER AND FEDERAL OFFSET REQUIREMENTS

(Rev. Adopted 11/4/98; Effective 12/17/98)

The determination that a project at an existing major stationary source is a major

modification and is subject to the LAER and federal emission offsets provisions of this

Subsection (d)(8) shall be based on the stationary source’s contemporaneous emission

increases. The determination that a project at a new stationary source is a new major

source and is subject to the LAER and emission offset provisions of this Subsection (d)(8)

shall be based on the post-project potential to emit of the project.

(i) Requirements

The applicant for a new, modified, relocated or replacement emission unit or

project at a stationary source shall submit, with each application for such emission

unit or project, sufficient information to determine the emission increases from such

emission unit or project and the contemporaneous emission increases if the station-

ary source is an existing major stationary source. Each application shall be accom-

panied by a current tabulation of contemporaneous emission increases if the station-

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ary source is an existing major stationary source. For any major stationary source

undergoing a major modification based on the stationary source’s contemporaneous

emission increase and for each emission unit or project which constitutes a new

major stationary source, the LAER and offset provisions shall apply as follows:

(A) Lowest Achievable Emission Rate (LAER)

The LAER provisions of Subsection (d)(1) shall apply to any project

which results in an emissions increase occurring at a stationary source which

increase constitutes a new major source or major modification, on a pollutant

specific basis. This provision shall not relieve a source from also complying

with the BACT provisions of Subsection (d)(1), as applicable.

(B) Emission Offsets

The NOx and VOC emission increases from a new, modified, relocated

or replacement emission unit or project which increases constitute a new major

source or major modification of a major stationary source shall be offset at a

ratio of 1.2 to 1.0, on a pollutant specific basis. Interpollutant offsets may be

used provided they meet the requirements of Subsection (d)(5)(vi).

When an emissions increase from a new or modified emission unit or project has

been determined to be subject to, and approved as in compliance with, the BACT, LAER

and/or federal emission offset requirements of Subsections (d)(7) and (d)(8) of this rule,

the contemporaneous emissions increase for the subject air contaminant or precursor shall

thereafter not include any residual emission increase from such new or modified emission

unit or project, on a pollutant specific basis.

(e) ADDITIONAL REQUIREMENTS – FEDERAL MAJOR STATIONARY

SOURCES

(1) Compliance Certification

Prior to receiving an Authority to Construct or modified Permit to Operate pursuant

to this rule, an applicant for any new or modified stationary source required to satisfy the

LAER provisions of Subsection (d)(1) or the major source offset requirements of

Subsection (d)(8) which constitutes either a new federal major stationary source or a

federal major modification shall certify that all major stationary sources owned or

operated by such person, or by any entity controlling, controlled by or under common

control with such a person, in the state are in compliance, or on an approved schedule for

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compliance, with all applicable emission limitations and standards under the federal Clean

Air Act.

(2) Alternative Siting and Alternatives Analysis

The applicant for any new federal major stationary source required to satisfy the

LAER provisions of Subsection (d)(1) or the major source offset requirements of

Subsection (d)(5), or federal major modification shall conduct an analysis of alternative

sites, sizes, production processes, and environmental control techniques for such proposed

source or modification which demonstrates that the benefits of the proposed source or

modification outweigh the environmental and social costs imposed as a result of its

location or construction. Analyses conducted in conjunction with state or federal statutory

requirements may be used.

(3) ANALYSIS OF VISIBILITY IMPAIRMENT IN CLASS I AREAS

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any emission unit or project which constitutes a new federal major

stationary source or federal major modification and which may have an impact on

visibility in a Class I area unless the applicant demonstrates that the following

requirements are satisfied. The demonstrations required by this Subsection (e)(3) shall be

based on the emission unit or project emission exhaust system design and discharge

characteristics but not to an extent greater than good engineering practice stack height.

This provision shall not be applied to limit actual stack height.

(i) Required Analyses

At the time of application submittal, the applicant shall provide an initial

screening analysis of the impairment to visibility, including any integral vista, in

each affected Class I area as a result of the emissions increases from the new federal

major stationary source or federal major modification, and any general commercial,

residential, industrial and other growth associated with the new source or

modification. If a screening analysis indicates that a visibility impairment will

occur, as determined by the Air Pollution Control Officer, a more in-depth visibility

impairment analysis shall be prepared. All analyses of impairment to visibility shall

be conducted using applicable methods and procedures promulgated or approved by

the federal EPA.

(ii) Notification Requirements

The Air Pollution Control Officer shall notify the Federal Land Manager and

EPA not later than 30 days after receipt of an application for a new federal major

source or a federal major modification subject to the requirements of this Subsection

(e)(3). The notification shall include a copy of the application submittal, the

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location of the project, the project’s approximate distance from all Class I areas

within 100 km of San Diego County (as specified in Rule 20.1, Table 20.1 - 3), the

results of any AQIA, and the results of any screening analysis and any more in-depth

analysis of the impacts of the project on visibility in any Class I area.

(iii) Application Denial

The Air Pollution Control Officer shall deny an Authority to Construct or

Permit to Operate for any new federal major stationary source or federal major

modification if the Air Pollution Control Officer finds, after consideration of

comments and any analysis from the Federal Land Manager, that the emissions

increases from such new source or modification would have an adverse impact on

visibility in a Class I area. As defined in 40 CFR 52.21(b)(29), an adverse impact on

visibility means visibility impairment which interferes with the management,

protection, preservation or enjoyment of the visitor’s visual experience of the Class I

area.

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San Diego County Air Pollution Control District Rule 20.4

Regulation II/Post-Workshop Draft – 10/07/15 -i-

RULE 20.4

NEW SOURCE REVIEW

PORTABLE EMISSION UNITS

(ADOPTED AND EFFECTIVE 5/17/94)

(REV. ADOPTED AND EFFECTIVE 12/17/97)

(REV. ADOPTED 11/4/98; EFFECTIVE 12/17/98)

(REV. ADOPTED (DATE OF ADOPTION); AND EFFECTIVE (date of adoption EPA approval into SIP))

Table of Contents

SECTION TITLE PAGE NO.

(a) APPLICABILITY .............................................................................................................. 1

(b) EXEMPTIONS .................................................................................................................. 1

(c) DEFINITIONS ................................................................................................................... 2

(d) STANDARDS .................................................................................................................... 3

(1) BACT and LAER for New, or Modified or Replacement Portable Emission Units. 3

(i) New or Modified Portable Emission Units - BACT ........................................ 3

(ii) New or Modified Type III Portable Emission Units - LAER ........................... 3

(iii) New or Modified Portable Emission Units - PSD Stationary Sources ............ 4

(2) Air Quality Impact Analysis (AQIA) ........................................................................ 4

(i) AQIA for Portable Emission Units .................................................................. 4

Table 20.4 - 1: AQIA Trigger Levels .............................................................. 5

(ii) AQIA for PM2.5 and PM10 Emission Increases ............................................... 6

(iii) AQIA Not Required for NOx or VOC Impacts on Ozone ............................... 6

(iiiiv) AQIA Requirements for PM10 Impacts May be Waived ................................. 6

(ivv) AQIA May be Required ................................................................................... 7

(3) Prevention of Significant Deterioration (PSD)Significant Impact in Class I Areas . 9

(i) Federal Land Manager and Federal EPA Notification ..................................... 9

(ii) ARB, SCAQMD and Imperial APCD Notification ......................................... 9

(4) Public Notice and Comment ..................................................................................... 9

(i) Public Comment Period ................................................................................... 9

(ii) Applicant Response ........................................................................................ 10

(iii) Publication of Notice...................................................................................... 10

(iv) Information to be Made Available for Public Inspection ............................... 10

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Table of Contents

SECTION TITLE PAGE NO.

(5) Emission Offsets ................................................................................................... 11

(i) Emission Offsets - Type I Portable Emission Units ..................................... 11

(ii) Emission Offsets - Type III Portable Emission UnitsPermanent and

Temporary Emission Offsets ........................................................................ 12

(iii) RESERVED ..................................................................................................... 13

(iv) Interpollutant Offsets Ratios ........................................................................ 13

Table 20.4 - 2: Interpollutant Offset Ratios ................................................ 13

(v) Alternative Offsetting ................................................................................... 13

NOTE: The following listed sections and subsections will not be submitted to the federal

Environmental Protection Agency (EPA) for inclusion in the San Diego State

Implementation Plan (SIP):. As such, the following listed sections and subsections are

not enforceable by EPA, but remain enforceable by the San Diego County Air

Pollution Control District.

Subsections (b)(32) and (b)(43); Subsections (d)(1)(i) and (iii); Subsections

(d)(2)(i)(B), (d)(2)(iiiiv), and (d)(5)(i) (d)(2)(v)(B); and Subsections (d)(3) and (d)(5).

Subsections (d)(2)(i), (d)(2)(ii), and (d)(2)(iv) will be submitted to EPA for inclusion in the SIP

only with respect to national ambient air quality standards.

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RULE 20.4. NEW SOURCE REVIEW - PORTABLE EMISSION UNITS

(Adopted & Effective: 5/17/94; Rev. Effective 12/17/97)

(Rev. Adopted 11/4/98; Effective 12/17/98)

(Rev. Adopted (date of adoption); & Effective (date of adoption EPA

approval into SIP))

(a) APPLICABILITY

This rule applies to any new, or modified or replacement portable emission unit.

Subsection (d)(2)(iv) of this rule also applies to any stationary source where one or more

portable emission units will be located. This rule does not apply to identical or like-kind

replacement portable emission units exempt from Authority to Construct and modified Permit

to Operate requirements pursuant to these Rules and Regulations. Compliance with this rule

does not relieve a person from having to comply with other applicable requirements in these

rules and regulations, or state and federal law.

(b) EXEMPTIONS

The exemptions contained in Rule 20.1, Section (b) apply to this rule. In addition, the

provisions of this rule shall not apply to any previously permitted portable emission unit, unless

such unit is modified. for purposes of this rule, the following exemptions shall apply.

(1) Except as provided in Subsection (d)(2)(iv) of this rule, the provisions of this

rule shall not apply to any previously permitted portable emission unit, unless such unit is

modified or replaced.

(2) The provisions of this rule shall not apply to any new, modified or replacement

portable emission unit exempt from Authority to Construct and Permit to Operate

requirements pursuant to Rule 11 of these Rules and Regulations.

(32) Emission increases resulting from an air contaminant emission control project

to reduce emissions from a portable emission unit shall be exempt from the emission

offset requirements of Subsection (d)(5) of this rule to the extent that the project does not

include an increase in the capacity of the emission unit being controlled. Emission

increases that are associated with an increase in capacity of the emission unit being

controlled shall be subject to the emission offset provisions of this rule, as applicable.

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This exemption from offsets shall not apply to any air contaminant for which the

emissions increase constitutes a new federal major stationary source or a federal major

modification.

(43) The emission offset requirements of Subsection (d)(5) of this rule shall not

apply to a portable emission unit operating at a stationary source if the operation of such

unit is not related to the primary activities of the stationary source, as defined herein.

(c) DEFINITIONS (Rev. Adopted 11/4/98; Effective 12/17/98)

The definitions contained in Rule 20.1, Section (c) shall apply to this rule. In

addition, for purposes of this rule, the following definitions shall apply.

(1) "Related to the Primary Activities of the Stationary Source" means with

regard to the operation of a portable emission unit, that the unit is considered under the

same major industrial grouping, as identified by the first two digits of the applicable code

in The Standard Industrial Classification Manual, as the stationary source where such

unit will be operated, or is used as part of or supplements a primary process at the

stationary source where the operation of one is dependent upon or affects the operations

of the other. This includes industrial processes, manufacturing processes and any

connected processes involving a common material, service or product.

(1) "Initial Permit Issuance" means the first instance an Authority to Construct is

issued for an emission unit pursuant to Rules 20.1 and 20.4, as they are currently in effect.

(2) "Previously Permitted” means a portable emission unit which has a valid

Authority to Construct or Permit to Operate issued pursuant to these rules and regulations

prior to May 17, 1994 and that the emission unit has not been modified since May 17,

1994 or otherwise undergone initial permit issuance.

(3) "Type I Portable Emission Unit" means a portable emission unit that can be

operated only at a stationary sources which have has an aggregate potential to emit of less

than 50 tons per year of oxides of nitrogen (NOx) and 50 tons per year of volatile organic

compounds (VOC). Type I portable emission units may also operate at stationary sources

which have an aggregate potential to emit greater than these levels if emission offsets at

the ratios specified for Type III portable emission units in Section (d)(5)(ii) are provided

for the period of time the portable emission unit is located at such a stationary source.

(4) RESERVED

(5) "Type III Portable Emission Unit" means a portable emission unit that can be

operated at any stationary source, regardless of the source’s aggregate potential to emit.

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(d) STANDARDS

(1) BACT AND LAER FOR NEW, OR MODIFIED OR REPLACEMENT PORTABLE

EMISSION UNITS

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any new, or modified or replacement portable emission unit unless

the applicant demonstrates that the following requirements will be satisfied. These

requirements shall be applied on an air contaminant-specific basis.

(i) New or Modified Portable Emission Units - BACT

Unless a new or modified portable emission unit is equipped to comply with

Lowest Achievable Emission Rate (LAER), as provided in Subsection (d)(1)(ii) of

this rule, for the following air contaminants otherwise subject to BACT, any new or

modified portable emission unit which has any increase in its potential to emit

particulate matter (PM10), NOx, VOC, or oxides of sulfur (SOx), and which unit has

a post-project potential to emit of 10 pounds per day or more of particulate matter

(PM10), NOx, VOC, or oxides of sulfur (SOx), respectively, and any replacement

portable emission unit which has such a post-project potential to emit, shall be

equipped with Best Available Control Technology (BACT) for each such air

contaminant.

(ii) New or Modified Type III Portable Emission Units - LAER

Any new, or modified or replacement Type III portable emission unit which

has any emissions increase of an air contaminant or its precursors for which the

District is designated as non-attainment with respect to a national ambient air quality

standard, and which may be expected to operate at a stationary source that is a major

stationary source of such air contaminant or precursor, shall be equipped to comply

with LAER for each such air contaminant or precursor except as provided in (A), or

(B) or (C) below. For each air contaminant for which LAER is not required by the

following, BACT shall apply:

(A) This LAER requirement shall not apply if the applicant

demonstrates, to the satisfaction of the Air Pollution Control Officer, and

agrees to federally enforceable permit conditions to ensure that, the emissions

increase of such nonattainment air contaminant or precursor from such unit

will not constitute a new major source or a major modification at any

stationary source at which it is to be located and which is major for a such non-

attainment air contaminant or precursor, or if the emissions increase is offset at

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a ratio of 1.3 to 1.0 by actual emission reductions at each major stationary

source at which it is located.

(B) LAER shall not apply if operation of the portable emission unit is

not related to the primary activities of the major stationary source at which it is

to be located, provided the portable emission unit, or aggregation of such

portable emission units co-located at the same stationary source, does not

constitute a new federal major stationary source.

(iii) New or Modified Portable Emission Units - PSD Stationary Sources

Any new, or modified or replacement portable emission unit which may be

located at a Prevention of Significant Deterioration (PSD) stationary source, and

which emission unit has an emission increase of one or more air contaminants which

constitutes a new PSD stationary source (see Table 20.1-11) or PSD modification

(see Tables 20.1-8 and 20.1-10) shall be equipped with BACT for each such air

contaminant.

(2) AIR QUALITY IMPACT ANALYSIS (AQIA)

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any new, modified or replacement portable emission unit unless the

following requirements are satisfied. Modeling shall be used to conduct any Air Quality

Impact Analysis (AQIA). The AQIA shall be performed using maximum expected

ambient air contaminant concentrations within San Diego County, based on existing data,

unless the applicant agrees to enforceable permit conditions that requires a new AQIA

whenever the equipment is to be located at a stationary source for which the initial AQIA

was not representative. Area fugitive emissions of PM10 shall not be included in the

demonstrations required below unless the Air Pollution Control Officer determines, on a

case-by-case basis, that a project’s area fugitive emissions of PM10 must be evaluated in

order to protect public health and welfare.

The demonstrations required by this Subsection (d)(2) shall be based on the emission

unit emission exhaust system design and discharge characteristics but not to an extent

greater than good engineering practice stack height. This provision shall not be applied to

limit actual stack height.

(i) AQIA for Portable Emission Units

(A) Initial Permit Issuance For each new, or modified or replacement

portable emission unit which results in an emissions increase equal to or

greater than the amounts listed in Table 20.4 - 1, the applicant shall

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demonstrate to the satisfaction of the Air Pollution Control Officer, through an

AQIA, as defined in Rule 20.1, that the new, or modified or replacement

portable emission unit will not:

(1) cause a violation of a state or national ambient air quality

standard anywhere that does not already exceed such standard, nor

(2) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded, nor

(3) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection(d)(2)(iii), nor

(43) prevent or interfere with the attainment or maintenance of

any state or national ambient air quality standard.

(B) For each new, modified or replacement portable emission unit

which results in an emissions increase equal to or greater than the amounts

listed in Table 20.4 - 1, the applicant shall demonstrate to the satisfaction of

the Air Pollution Control Officer, through an AQIA, that the new, modified or

replacement portable emission unit will not:

(1) cause a violation of a state ambient air quality standard

anywhere that does not already exceed such standard, nor

(2) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection(d)(2)(iv), nor

(3) prevent or interfere with the attainment or maintenance of any

state ambient air quality standard.

If a PM10 AQIA is required, the AQIA shall include both directed

emitted PM10 and PM10 which would be formed by precursor air

contaminants prior to discharge to the atmosphere.

TABLE 20.4 - 1

AQIA Trigger Levels

Emission Rate

Air Contaminant (lb/hr) (lb/day) (tons/yr)

Particulate Matter (PM10) --- 100 15

Fine Particulates Matter (PM2.5) --- 67 10

Oxides of Nitrogen (NOx) 25 250 40

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Oxides of Sulfur (SOx) 25 250 40

Carbon Monoxide (CO) 100 550 100

Lead and Lead Compounds --- 3.2 0.6

(ii) AQIA for PM2.5 and PM10 Emission Increases

In determining if a PM2.5 or PM10 AQIA is required under this Subsection

(d)(2), the emissions increases shall include both directly emitted PM2.5 and PM10,

and PM2.5 and PM10 which would condense after discharge to the atmosphere. If a

PM2.5 or PM10 AQIA is required, the AQIA shall include both directly emitted PM2.5

or PM10, and PM2.5 or PM10 which would condense after discharge to the

atmosphere. Any permit terms or conditions limiting emissions of PM2.5 or PM10 as

a result of the requirements of this Subsection (d)(2) shall apply to the combination

of both directly emitted and condensable PM2.5 or PM10. The provisions of this

Subsection (d)(2)(ii) shall apply separately to PM2.5 and PM10.

(iii) AQIA Not Required for NOx or VOC Impacts on Ozone

Notwithstanding any other provision of this rule, a demonstration shall not be

required for determining the impacts from a portable emission unit's NOx or VOC

emissions on the state or national an ambient air quality standards for ozone, unless

the Air Pollution Control Officer determines that adequate procedures exist for

determining the impacts of NOx or VOC emissions from point sources such

portable emission units on ozone ambient air quality standards and that such

procedures are acceptable to the California Air Resources Board (ARB) with regard

to state ambient air quality standards and the federal Environmental Protection

Agency (EPA) with regard to national ambient air quality standards.

(iiiiv) AQIA Requirements for PM10 Impacts May be Waived

Notwithstanding the requirements of Subsection (d)(2)(i) above, the Air

Pollution Control Officer may waive the AQIA requirements for PM10 impacts on

the state ambient air quality standards, as follows:

(A) If the emission unit, individually or in combination with any other

portable emission units proposed to be co-located, will result in a maximum

particulate matter air quality impact of less than 5 µg/m3 (24-hour average

basis) and 3 µg/m3 (annual geometric mean basis), all of the emission unit’s

PM10 emission increases, including area fugitive emissions of PM10, must be

offset at a ratio of 1.5 to 1.

(B) If the projectemission unit, individually or in combination with any

other portable emission units proposed to be co-located, will result in a

maximum PM10 air quality impact equal to or greater than 5 µg/m3 but less

than 10 µg/m3 (24-hour average basis) or equal to or greater than 3 µg/m3 but

less than 6 µg/m3 (annual geometric mean basis):

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(1) the emission unit must be equipped with BACT for PM10

without consideration for cost-effectiveness,

(2) all of the emission unit’s PM10 emission increases, including

area fugitive emissions of PM10, must be offset at an overall ratio of 1.5

to 1,

(3) sufficient emission offsets must be provided within the

emission unit’s impact area to offset all of the project’s PM10 emission

increases, including area fugitive emissions of PM10, at a ratio of at least

1 to 1,

(4) emission offsets in an amount and location which are demon-

strated to have a modeled off-stationary source air quality impact at least

equal to the emission unit’s PM10 ambient air quality impact minus 5

µg/m3 (24-hour average basis) and 3 µg/m3 (annual geometric mean

basis) must be provided, and

(5) all reasonable efforts to reduce the air quality impacts of the

project are made.

(C) In no case shall the projectemission unit, individually or in

combination with any other portable emission units proposed to be co-located,

result in a maximum PM10 air quality impact equal to or greater than 10 µg/m3

(24-hour average basis) or equal to or greater than 6 µg/m3 (annual geometric

mean basis).

(ivv) AQIA May be Required

(A) Notwithstanding any other provision of this rule, the Air Pollution

Control Officer may require an AQIA for any portable emission unit, or

aggregation of portable emission units, if it may be expected to:

(A1) cause a violation of a state or national ambient air quality

standard anywhere that does not already exceed such standard, or

(B2) cause additional violations of a national ambient air quality

standard anywhere the standard is already being exceeded, or

(C) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(iii), or

(D3) prevent or interfere with the attainment or maintenance of any

state or national ambient air quality standard.

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The Air Pollution Control Officer shall deny an Authority to Construct or

modified Permit to Operate for any portable emission unit or aggregation of

portable emission units for which an AQIA is required pursuant to this

Subsection (d)(2)(v)(A) unless the applicant demonstrates to the satisfaction of

the Air Pollution Control Officer that the emission increases from such unit or

aggregation of units will not result in any of the impacts to the national

ambient air quality standards specified above in (1), (2) and (3) of this

Subsection (d)(2)(v)(A).

(B) Notwithstanding any other provision of this rule, the Air Pollution

Control Officer may require an AQIA for any portable emission unit, or

aggregation of portable emission units, if it may be expected to:

(1) cause a violation of a state ambient air quality standard

anywhere that does not already exceed such standard, or

(2) cause additional violations of a state ambient air quality

standard anywhere the standard is already being exceeded, except as

provided for in Subsection (d)(2)(iv), or

(3) prevent or interfere with the attainment or maintenance of any

state ambient air quality standard.

The Air Pollution Control Officer shall deny an Authority to Construct

or modified Permit to Operate for any portable emission unit or aggregation of

portable emission units for which an AQIA is required pursuant to this

Subsection (d)(2)(v)(B) unless the applicant demonstrates to the satisfaction of

the Air Pollution Control Officer that the emission increases from such unit or

aggregation of units will not result in any of the impacts to state ambient air

quality standards specified above in (1), (2) and (3) of this Subsection

(d)(2)(v)(B).

(C) If the Air Pollution Control Officer determines that concurrent

operations of more than one portable emission unit at the same stationary

source may be expected to cause any of the air quality impacts specified in this

Subsection (d)(2)(v) to occur, the Air Pollution Control Officer may require

the owner or operator of the units, or of the stationary source, to apply for and

obtain a Permit to Operate for the operations and to demonstrate that the

operations will not cause any such air quality impacts to occur.

This provisionSubsection (d)(2)(v) may be invoked notwithstanding the

equipment being previously permitted or having undergone initial permit issuance.

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(3) PREVENTION OF SIGNIFICANT DETERIORATION (PSD)SIGNIFICANT IMPACT

IN CLASS I AREAS

The Air Pollution Control Officer shall deny an Authority to Construct or modified

Permit to Operate for any portable emission unit which is expected to have a significant

impact on any Class I area, as determined by an AQIA required pursuant to Subsection

(d)(2), unless the following requirements are satisfied. The Air Pollution Control Officer

shall:

(i) Federal Land Manager and Federal EPA Notification

Notify the Federal Land Manager and the federal EPA have been notified in

writing. This notification shall include all of the information specified by

Subsection (d)(4)(iv), the location(s) where operation of the portable emission unit

may cause a significant impact on any Class I area, the approximate distance from

all Class I areas within 100 km of San Diego County (as specified in Rule 20.1,

Table 20.1-3) and the results of the AQIA, and

(ii) ARB, SCAQMD and Imperial County APCD Notification

Notify and submit to Tthe California ARB, the South Coast Air Quality

Management District and the Imperial County Air Pollution Control District have

been notified and have been provided the information specified in Subsection

(d)(4)(iv).

(4) PUBLIC NOTICE AND COMMENT

The Air Pollution Control Officer shall not issue an Authority to Construct or modi-

fied Permit to Operate for any portable emission unit subject to the AQIA or notification

requirements of Subsections (d)(2) or (d)(3), nor for any emission unit or project which

results in an emissions increase of VOCs equal to or greater than 250 pounds per day or

40 tons per year, unless the following requirements are satisfied.

(i) Public Comment Period

At least 40 days before taking final action on an application subject to the

requirements of Subsections (d)(2) or (d)(3), the Air Pollution Control Officer shall:

(A) provide the public with notice of the proposed action in the manner

prescribed in Subsection (d)(4)(iii), and

(B) provide a copy of the public notice to the federal EPA

Administrator, through its Region 9 office, to the California ARB, and to any

tribal air pollution control agencies having jurisdiction in the San Diego Air

Basin, and

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(BC) make available for public inspection all information relevant to

the proposed action as specified in Subsection (d)(4)(iv), and

(CD) provide at least a 30-day period within which comments may be

submitted.

The Air Pollution Control Officer shall consider all comments submitted.

(ii) Applicant Response

Except as agreed to by the applicant and the Air Pollution Control Officer, no

later than 10 days after close of the public comment period, the applicant may

submit written responses to any comment received during the public comment

period. Responses submitted by the applicant shall be considered prior to the Air

Pollution Control Officer taking final action. The applicant's responses shall be

made available for public review in the public record of the permit action.

(iii) Publication of Notice

The Air Pollution Control Officer shall publish a notice of the proposed action

in at least one newspaper of general circulation in San Diego County. The notice

shall:

(A) describe the proposed action, including the use of any modified or

substitute air quality impact model as allowed under 40 CFR Part 51,

Appendix W, and

(B) identify the location(s) where the public may inspect the

information relevant to the proposed action, and

(C) indicate the date by which all comments must be received by the

District for consideration prior to taking final action.

(iv) Information to be Made Available for Public Inspection

The relevant information to be made available for public inspection shall

include, but is not limited to:

(A) the application and all analyses and documentation used to support

the proposed action, the District's compliance evaluation, a copy of the draft

Authority to Construct or Permit to Operate and any information submitted by

the applicant not previously labeled Trade Secret pursuant to Regulation IX,

and

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(B) the proposed District action on the application, including the

preliminary decision to approve, conditionally approve or deny the application

and the reasons therefore.

(5) EMISSION OFFSETS (Rev. Adopted 11/4/98; Effective 12/17/98)

Except as provided in Subsections (b)(3) and (b)(4) of this rule, the Air Pollution

Control Officer shall not issue an Authority to Construct or modified Permit to Operate

for any new, modified or replacement portable emission unit or project which has any

emissions increase of VOC or NOx and which may be located at a major stationary

source of such air contaminant unless emission offsets are provided for such emission

increases. Emission offsets shall be required on an air contaminant-specific basis and

shall meet the requirements specified below and in Subsection (d)(5) of Rule 20.1 of

these Rules and Regulations. Interpollutant offsets may be used, provided such offsets

meet the requirements of Subsection (d)(5)(iv) below.

(i) Emission Offsets - Type I Portable Emission Units

Emission offsets shall not be required for Type I emission increases of VOC

and NOx emissions from portable emission units which may be operated at a major

stationary source of VOC or NOx emissions, respectively. If the VOC and NOx

emission increases of the portable emission unit have been previously fully offset by

permanent, enforceable emission reductions or the permanent surrender of emission

reduction credits pursuant to these Rules and Regulations, no further offsets shall be

required unless the unit is subsequently modified resulting in an emissions increase.

If the NOx and VOC emissions of the unit have not previously been fully and

permanently offset, the owner or operator of such unit shall first apply for and

obtain a modified Permit to Operate for operation at the major stationary source and

shall provide emission offsets, on a pollutant-specific basis, for all VOC and NOx

emissions from the portable emission unit. Emission offsets shall be provided at a

ratio of 1.2 to 1.0 if the portable emission unit is equipped to comply with LAER

for VOC or NOx emissions, as applicable, or at a ratio of 1.3 to 1.0 if the portable

emission unit is equipped to comply with BACT for VOC or NOx emissions, as

applicable.

If a portable emission unit is brought onto a major stationary source of VOC or

NOx to remedy an immediately occurring emergency situation, the application for a

modified Permit to Operate the portable emission unit shall be submitted within 24

hours from the time the portable emission unit is first located at the affected

stationary source.

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(ii) Emission Offsets - Type III Portable EmissionPermanent and

Temporary Emission Offsets

The Air Pollution Control Officer shall not issue an Authority to Construct or

modified Permit to Operate for any Type III portable emission unit unless emission

offsets are provided on a pollutant-specific basis for any emission increases of air

contaminants and their precursors for which the District is designated as non-

attainment with respect to a national ambient air quality standard. Emission offsets

shall be provided at a ratio of 1.2 to 1.0 for VOC and for NOx emission increases.

As provided for in Subsection (d)(5)(iv), interpollutant offsets may be used.

Emission offsets required by this Subsection (d)(5) shall be provided as

specified in paragraphs (A) or (B) below.

(A) Permanent Emission Offsets

The owner or operator of a portable emission unit may satisfy the offset

requirements of this Subsection (d)(5)(i) by permanently surrendering to the

Air Pollution Control Officer sufficient emission reduction credits or providing

sufficient permanent actual emission reductions prior to the first date such new,

modified or replacement portable emission unit commences operating at a

major stationary source of VOC or NOx emissions, as applicable, in San Diego

County. Thereafter, further emission offsets shall not be required for the

applicable air contaminant unless such unit is modified resulting in an

emissions increase.

(B) Temporary Emission Offsets

The owner or operator of a portable emission unit may satisfy the

emission offset requirements of this Subsection (d)(5)(i) by temporarily

surrendering to the Air Pollution Control Officer sufficient emission reduction

credits or temporarily providing concurrent, enforceable actual emission

reductions for the entire period of time that the portable emission unit is located

at the stationary source where emission offsets are required. When emission

reduction credits are temporarily surrendered, such credits shall be reduced by

10 percent prior to returning such credits to the person surrendering the credits.

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(iii) RESERVED

(iv) Interpollutant Offsets Ratios

The Air Pollution Control Officer may allow the use of interpollutant

emission offsets at the ratios specified in Table 20.4 - 2 to satisfy the offset

requirements of this Subsection (d)(5), provided the applicant demonstrates to the

satisfaction of the Air Pollution Control Officer that the AQIA requirements of

Subsection (d)(2), as applicable, are satisfied for the emission increase. The

interpollutant ratios shall be multiplied by the applicable emission offset ratios

required by Subsection (d)(5)(i) of this rule to determine the final offset ratio.

TABLE 20.4 - 2

Interpollutant Ratios

Emission

Increase

Decrease Interpollutant

Ratio

Oxides of Nitrogen (NOx) NOx

VOC

1.0

2.0

Volatile Organic Compounds (VOC) VOC

NOx

1.0

1.0

(v) Alternative Offsetting

Emission offsets required by Subsection (d)(5) may, instead of being provided

on a unit by unit basis, shall be provided in the following manner.

(A) Emission Offset Pool

The owner or operator of a Type I portable emission unit may satisfy the

offset requirements of Subsection (d)(5) by the use of an emission offset pool.

An emission offset pool shall consist of emission offsets which are designated

for use by any number of portable emission units. Prior to renting, leasing or

otherwise making portable emission units available for use, the owner or

operator shall reserve the appropriate amount of offsets based on the portable

emission unit Type. The following recordkeeping requirements shall apply:

(1) The owner of portable emission units shall maintain daily

records containing sufficient information to ensure compliance with the

provisions of this rule and compile these records into a log. The daily

logs shall be kept and shall include the following information for each

portable emission unit except those which are in a designated holding

yard or in transit: the permit number, the portable equipment type, the

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date, the potential to emit of the unit (tons per year), the name of the

stationary source where the unit is available for use, the stationary

source’s offset classification based on the stationary source’s potential to

emit (i.e., less than 50 tons per year, or 50 tons per year or more for VOC

and NOx, the sum of all portable emission units' potentials to emit which

are available for use on that day, and a comparison between the sum of all

portable emission units’ potentials to emit, the required offset ratio and

the total amount of offsets (tons per year) in the offset pool.

(2) The owner shall summarize the daily logs into an annual

compliance log and make the daily and annual logs and supporting

documentation available to the District upon request.

(B) Temporary Limitation on Existing Emission Units

With the written concurrence of the permit holder, the Air Pollution

Control Officer may place temporary limitations on the operation of any

existing emission unit(s) at the stationary source where a portable emission unit

is to be located in order to create temporary offsetting emission reductions.

Temporary emission reductions shall be provided for the entire period of time

that the portable emission unit is located at the stationary source. Emission

reductions created by the temporary shutdown or curtailment of existing unit(s)

at the stationary source shall be used to offset the portable emission units'

potential to emit provided the reductions satisfy the offset ratio requirements of

Subsection (d)(5).

If a portable emission unit is brought onto a stationary source to remedy

an immediately occurring emergency situation, notice of temporary credits to

offset portable emission unit emissions shall be made within 24 hours from

the time the portable emission unit is made available for use at the affected

stationary source.

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San Diego County Air Pollution Control District Rule 20.6

Regulation II/Draft – 10/07/15 -1-

This rule was amended on 9/19/84 to implement the Federal Prevention of Significant

Deterioration Program (PSD), and became effective on 11/21/85 upon EPA delegation of the

authority to implement & enforce the PSD Program.

RULE 20.6. STANDARDS FOR PERMIT TO OPERATE AIR QUALITY

ANALYSIS (Effective 11/4/76; Delegation Effective 11/21/85;

Revised 12/14/87; Revised & Effective (date of adoption))

(a) The Air Pollution Control Officer shall deny a Permit to Operate to any stationary

source until the source has obtained an Authority to Construct granted pursuant to the Rules

and Regulations except as provided in Section (b) of this rule.

(b) The Air Pollution Control Officer shall not grant a Permit to Operate to any

stationary source that emits quantities of air contaminants greater than those assumed in the

analysis required for the authority to construct for the source, unless the Air Pollution Control

Officer determines that best available control technology or the lowest achievable emission rate

is used as required under Rules 20.2, 20.3 or 20.4, or 20.5 and, where applicable, the Air

Pollution Control Officer performs the air quality impact analysis required by Section (cd) of

Rules 20.2, 20.3 or 20.4, as applicable, and determines that the actual emissions from the

source may not be expected to result in the violation of any national ambient air quality

standard or any applicable air quality increment or interfere with the attainment or maintenance

of any ambient air quality standard. In the event the stationary source emits or contributes to

any air contaminant for which a national ambient air quality standard is exceeded and where

the actual emissions from the source exceed the applicability or emission thresholds of Rule

20.43, the requirements of Rule 20.4(b)3(d) must be satisfied.

(c) The Air Pollution Control Officer shall impose reasonable conditions on a Permit to

Operate such as he deems are necessary to ensure that the stationary source will be operated in

the manner assumed in making the analysis required by Rules 20.1, 20.2, 20.3, and 20.4, 20.5

and 20.7 or Section (b) of this rule, whichever is applicable. Where appropriate, this shall

include a condition to prohibit the operation of an existing source after the replacement source

is effectively operating.

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(d) Sources having received an Authority to Construct prior to the adoption of Rule

20.2, 20.3, 20.4, 20.5, and 20.7 shall not be subject to the provisions of this rule.